Coronavirus: New evidence of how curbs harm economy
Fresh clampdowns on pubs and restaurants have put the brake on growth in the services sector, according to a key survey today.
Fears of a second downturn in the autumn increased when the IHS Markit/CIPS PMI Index showed a “sharp loss of momentum” this month.
The provisional “flash” version of the index fell from 56.1 in September to 52.3 in October, the weakest since June. A reading above 50 indicates growth.
Respondents “overwhelmingly suggested that the latest setback for service sector output was due to a renewed downturn across the travel, leisure and hospitality industries amid tighter restrictions on trade and lockdown measures”.
Chris Williamson, of IHS Markit, said: “While the fourth quarter still looks likely to see the economy expand, the rate of growth looks to have slowed sharply and the risk of a new downturn has risen.”
The Mayor estimated today that spending by tourists in central London is set to plummet by £10.9 billion this year.
Analysis of forecasts by Visit Britain shows overseas tourists will spend £7.4 billion less on goods and services in London’s economic and cultural centre throughout 2020.
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