Businesses in the South East kept cutting jobs in May as the coronavirus lockdown hit companies large and small - and there’s a warning that the region’s economic recovery could take a long time.
The latest NatWest South East Business Activity Index showed an unprecedented collapse in business activity in April. And while it fell at a slower rate in May, it was still the second-biggest fall recorded in the history of the survey.
The PMI survey measures the month on-month change in the region's business activity - with any number below 50 showing a fall. The May index stood at 32.8.
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The private sector firms polled said they cut their workforces again in May. They said that was due to weak demand and business closures during lockdown.
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While the rate of job cuts was below April’s record level, it was still among the sharpest recorded since data collection began in 1997.
But there is some positive news. The rate of decline in the South East was among the softest in the 海角视频. And asked about the outlook for the next 12 months, SE firms were more optimistic than they had been for three months as they hoped businesses would be able to reopen as lockdown restrictions eased.
Stuart Johnstone, managing director, London & South East corporate and commercial banking at NatWest, said: “Business activity in the South East continued to decline sharply in May, as restrictions due to the COVID-19 pandemic continue to disrupt business and hinder demand. Incoming new business fell further, with manufacturers and service providers alike suffering from muted sales. Subsequently, firms made further substantial cuts to workforce numbers.
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"Although the rates of decline softened from April, as looser lockdown restrictions allowed some companies to reopen, the falls in activity, new orders and employment were still the second-quickest on record.
"Overall, latest data indicate signs of the downturn bottoming out, but with the pandemic dealing such an unprecedented economic blow, any recovery will inevitably be lengthy."