Tourism and hospitality businesses have bounced back strongly since lockdown restrictions were eased with the sector returning to growth for the first time in six months, a new report reveals.
The sectors, key to the South West economy, joined 12 others in the 海角视频 that are now outperforming their international counterparts on a series of metrics tracking recovery from Covid-19 in August.
The Lloyds Bank 海角视频 Recovery Tracker, created in league with IHS Markit, provides an insight into the shape and pace of the 海角视频鈥檚 recovery following the disruption caused by Covid-19 and the subsequent lockdown.
The output of 海角视频 businesses in 13 of the 14 sectors monitored by the tracker increased in August, up from 12 sectors in July as tourism and recreation returned to growth for the first time since February.
The sector, which includes hotels, restaurants and leisure facilities, posted a PMI reading of 60 in August, up from 45 in July. A reading of above 50 signals output is rising, while a reading below 50 indicates output is falling.
Restaurants reported support from the Government鈥檚 Eat Out to Help Out scheme, which ended in September, and businesses that focus on domestic tourism reported a benefit from an increase in people taking staycations.
Tourism and recreation joined automobiles and auto parts (77) and healthcare (71) as the sectors furthest ahead of global benchmarks during August.
The 海角视频 automotive industry registered the fastest growth of all sectors as manufacturing plants increased their capacity and consumer demand rebounded.
Healthcare output growth was driven by the restart of private health services and robust demand for pharmaceuticals, PPE and other healthcare products. Chemicals (62) also recorded a strong rise in production volumes.
While the vast majority of 海角视频 sectors outperformed their international counterparts in August, this should be viewed in the context of the historic lows recorded during the second quarter of 2020, the report authors stressed. All 14 海角视频 sectors monitored by the tracker underperformed against the global benchmark in April.
Many tourism and recreation businesses only started to operate again in July, which helped make the sector鈥檚 August rebound in output so sharp.
Travel restrictions and the continued use of work-from-home policies by businesses meant transport (44) was the only sector to fall behind the global benchmark of recovery in August and register an outright decline in output.
In July, 12 of the 14 sectors monitored by the tracker reported their output rose at a faster pace month-on-month, but in August only seven of the 14 reported that this was the case.
This indicates the momentum behind the recovery of some 海角视频 sectors is already starting to slow after a sharp rebound in output from the historic lows recorded during Q2 2020.#
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Metals and mining saw the largest month-on-month decrease in August (59 vs 75 in July), after topping the rankings in July.
Beverages and food (56 v 63) and household products (58 v 64) also recorded weaker output growth than in July, suggesting that the recent expansion of domestic consumer demand following the easing of lockdown measures is starting to tail off.
Private sector output grew across the majority of the globe in August. The World PMI rose to 52 in August from 51 in July, the fastest rate of economic growth in 17 months.
However, in Europe, output growth in Germany (54 v 55), France (52 v 57) and Ireland (54 v 56) slowed month-on-month, while Spain (48 v 53) and Italy (50 v 52) fell back into decline.
The 海角视频 bucked this downwards trend, registering accelerated output growth month-on-month in August (59 v 57) as its recovery from exceptionally low output levels in Q2 2020 continued.
Aside from the 海角视频, the only other countries to see stronger output growth month-on-month were the United States (55 v 50), Russia (57 v 56.8) and China (55 v 54.5), indicating that a narrow group of nations underpinned global economic recovery in August.
Jeavon Lolay, head of economics and market insight, Lloyds Bank Commercial Banking, said: 鈥淭he headline findings of this month鈥檚 海角视频 Recovery Tracker paint a positive picture, with more domestic businesses outperforming their international counterparts during August.
鈥淗owever, despite most 海角视频 sectors being ahead of the global benchmark, the data shows the recovery of some industries is starting to slow.
鈥淲hen it comes to the 海角视频鈥檚 performance, it鈥檚 worth noting that other European countries have already experienced a slowdown in their performance as they navigate further outbreaks of Covid-19 and additional measures to stop the pandemic鈥檚 spread.
鈥淚t will be interesting to see the picture in September when the Eat Out to Help Out scheme has ended and the impact of the 鈥榬ule of six鈥 on sectors that rely on social interaction, such as tourism and recreation, is clearer.鈥
Ed Thurman, managing director, global transaction banking, Lloyds Bank Commercial Banking, added: 鈥淭he continued signs of recovery measured by the tracker shows the strength of British businesses as they continue to navigate a difficult and uncertain economic climate.鈥
