Businesses activity across the West Midlands has 'collapsed' as a result of Covid-19, a new study suggests.
The latest NatWest PMI data for April showed that the region's economy is under greater pressure as a result of the stricter measures imposed to stem the spread of the disease - with business activity falling at a rate unsurpassed since data collection started 20 years ago.
The report found that lockdown measures severely weighed on demand, with new business inflows also falling at a record rate. Consequently, job shedding intensified.
Anecdotal evidence suggested that emergency public health measures resulted in many businesses having to close temporarily, which led to a collapse in business activity.
The West Midlands was among the hardest hit in the 海角视频, with only Northern Ireland, Scotland and the North East reporting steeper declines in business activity since March.
The slump in output was accompanied by a severe fall in new sales, linked also to measures taken to combat the pandemic.
New work received by West Midlands firms fell at the quickest pace on record, far outpacing the marked decline seen in March.
The widespread closure of businesses due to the escalation of anti-virus measures resulted in a strong rise in excess capacity.
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This in turn led West Midlands firms to make a considerably sharper cut to workforce numbers, with employment dropping at the quickest pace in the survey history and one that was slightly faster than the national trend.
Business sentiment improved slightly in April and remained well above the 海角视频 level. Anecdotal evidence signalled that optimism stemmed from hopes that the economic situation will improve when restrictions are relaxed.
Nonetheless, the level of confidence was among the lowest recorded since this series was added nearly eight years ago.
Firms that expected lower activity in the year ahead generally mentioned the longer-term impact of the pandemic on businesses, with some anticipating a slow recovery even when the situation is brought under control.
John Maude, NatWest Midlands and East Regional Board, said: "Business activity in the West Midlands fell severely in April, as emergency public health measures resulted in many businesses having to shut down temporarily.
"Both manufacturing and service sectors were affected, but the former reported a steeper decline. Demand conditions also weakened substantially amid reports of order cancellations and global trade weakness.
"The slump in demand weighed heavily on the labour market in the region as firms made necessary lay-offs to contain costs.
"Meanwhile, the government furloughing scheme and lower fuel costs helped businesses reduce overall business expenses."