UK Economy Hit Hard by 'COVID-19'... March Services PMI Hits Record Low (Update)

[Asia Economy Reporter Choi Saeng-hye] The UK economy is experiencing a more severe economic shock from the spread of the novel coronavirus infection (COVID-19) than during the financial crisis.

According to major foreign media on the 3rd (local time), the March Markit-CIPS Services Purchasing Managers' Index (PMI) released that day fell 18.7 points from 53.2 in the previous month to 34.5. The March index is the lowest since the related survey began in 1996.

An index above 50 indicates expansion in business activity, while below 50 indicates contraction.

Since the service sector accounts for 80% of the UK economy, the Services PMI is considered a key indicator showing the trend of the UK economy. Earlier, the Manufacturing PMI announced on the 1st showed a decline from 53.2 in February to 34.5 in March. Accordingly, the Composite PMI, which includes both manufacturing and services, fell from 53 in February to 36 in March, marking the lowest since the index measurement began in 1998. This situation is worse than during the 2008 financial crisis.

This index was measured from the 12th to the 27th of last month.

UK Prime Minister Boris Johnson ordered all cafes, pubs, and restaurants to close starting from the 20th of last month, and from the 23rd, all stores except essential businesses such as supermarkets and pharmacies were ordered to suspend operations. Therefore, it is interpreted that this PMI reflects the economic shock caused by these closure measures.

This content was produced with the assistance of AI translation services.