Finally, surveys published by the British newspaper “The Guardian” predicted the return of the British economy to growth, which strengthens hopes that the anti-Coronavirus vaccines will achieve the country’s rapid recovery.
Studies reported that the British economy has already begun to return to growth with the preparations made by companies to reduce the impact of the closure, which raises optimism in the services sector to the highest level since 2004, noting that vaccines will enable a rapid economic recovery during the next summer with the increase in spending plans.
The newspaper quoted a survey of the «Chartered Purchasing Institute» confirming that business activity rose at the fastest rate in seven months, while local companies that participated in the survey stated that the higher levels of commercial activity are related to the possibility of easing restrictions on trade in the coming months. Demand has increased for the first time since last September, amid growing consumer confidence and increasing real estate market growth.
In a sign that companies plan to recover consumer spending after the lockdown ends, service sector companies – including hotels, restaurants and retailers – have hired employees to prepare for the reopening, leading to the first monthly hiring in March since the start of the pandemic.
Official figures indicate the first drop in the unemployment rate in the first three months of 2021 last week, as billions of pounds in government support give companies more confidence to retain workers and hire new employees.
The Purchasing Managers’ Composite Index (PMI), which provides a snapshot of business activity using the company’s surveys, rose to 56.6 in March from 49.6 in February, as any number higher than 50 indicates economic growth.
The return to growth came after official figures showed that the British economy contracted by 2.9% in January.
It also expected it to contract again in February, with the continuation of the closure measures.
However, the downturn was less severe than feared, as companies adapted to the restrictions by increasing business online.
Travel and hospitality
UK travel and hospitality companies set to benefit from the precautionary easing have reported an increase in demand since British Prime Minister Boris Johnson laid out the government’s roadmap to end the lockdown, as consumers began making restaurant reservations, hotel stays and holidays abroad. In advance.
Expectations of reopening and progress in the vaccine distribution program have also helped boost optimism in the service sector to the highest level since January 2004. Manufacturers have also benefited from increased demand from hospitality companies and retailers on the streets despite Brexit.
The chief British physician, Professor Chris Whitty, has warned of another increase in cases of “Covid-19” virus despite the vaccination program, pointing to the difficulties Britain faced in eliminating the new variables and the looming threat to impose a ban on the export of vaccine supplies. .
Chris Williamson, chief economist at the Chartered Institute, said that fears will continue, and companies may remain under pressure for some time.
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