Business activity in the South East of England plunged to a record low last month amid the coronavirus pandemic, new data reveals.
Private sector output in the region declined for the second month in a row during April, according to the latest NatWest PMI survey.
The headline NatWest South East Business Activity Index – a seasonally adjusted index that measures the combined output of the region’s manufacturing and service sectors - fell from 37.2 in March to an all-time low of 16.4 in April.
It was the most substantial reduction in the South East's private sector output since 1997, when the survey began.
However, the contraction in the South East was among the softest of the 12 monitored 海角视频 regions, with only the North West seeing a slower fall.
At a sector level, service providers recorded a quicker reduction than manufacturers, although both saw record rates of decline.
Incoming new business across the region dropped for the second month in a row and private sector firms reduced staff numbers (as has been the case in eight of the past nine months).
Companies reported a sharp rise in spare capacity during April, however, and the rate of backlog depletion was the most marked on record.
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Last month, input prices declined for the first time since May 2012, with panellists linking the decline to lower fuel and staff costs.
Average selling prices also dropped for the second month in a row, with firms linking the reduction to a combination of lower cost burdens and discounting in order to attract sales.
Although companies’ expectations with regards to activity over the coming 12 months picked up from March, sentiment remained historically subdued.
Stuart Johnstone, managing director London and South East, corporate and commercial Banking, said: “Private sector output in the South East declined for the second month running in April, with both activity and new business falling at the most marked rates in the survey’s 23-year history, as the economy continued to get hit by the Covid-19 pandemic.
“Subsequently, firms reduce staffing levels further, with the rate of job shedding the fastest on record.
He added: “On a positive note, the year ahead outlook for output picked up slightly from March’s recent low, indicating some tentative signs of confidence returning to the region’s firms, with panellists linking optimism to hopes of a timely recovery from the pandemic and the prospect that lockdown measures will be eased in the near future.”