Economists Say Things Getting Better Thanks to Vaccine

Covid Vaccine - economy will grow

A new report from the brainiacs at IHS Markit/CIPS is pointing to the growth in business expectations being highest for nearly seven years. Which may come as a surprise to those of us still battling through the lockdown.  We’d be interested to hear from dealerships who feel optimistic

While the UK purchasing managers’; index report cites the fastest decline in business activity since May 2020, and admits that job losses are accelerating amid shrinking order books, the all-conquering vaccine rollout seems to be the cavalry on the horizon as it is said to be lifting business optimism to its highest since May 2014.

Does this reflect the way you feel?

Tim Moore, Economics Director at IHS Markit, which compiles the survey, commented:

“While the UK economy is on course to contract sharply during the first quarter of 2021, businesses remain confident that pent up demand and an easing of pandemic restrictions will provide a springboard to recovery later this year.

“Positive news on the UK vaccine rollout pushed up business optimism to its strongest since May 2014 and this improvement contrasted with a decline in confidence reported by service providers in the euro area during January.”

However, in the very same report, this comment came from Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply:

“Regardless of the highest optimism since May 2014, the sector will remain in a parlous state until vaccination programmes give customers the confidence to start spending again and allow room for the Government to inject confidence into the economy by reducing covid restrictions.”

So just in case you were starting to feel cheery, think again!