IHS Markit data released on Friday showed that British producers suffered the biggest drop in production and demand for at least three decades in April, as measures to slow the spread of the new coronavirus severely deteriorated the economy.
The index for manufacturing PMI for April confirmed a widening contraction to 32.6, less than expectations of 32.9, falling further from March’s reading of 47.8.
IHS Markit said the decline in factory orders in April was the largest since 1992, when it was first surveyed.
Moreover, large areas of British industry have been affected since the outbreak of the Coronavirus, yet signs of growth seen were in the factories of medical and food products in the face of the needs of the current crisis.
It should be noted that the British economy has committed itself to the state of closure to cope with the spread of the coronavirus from March 23.
On the other hand, there are strong expectations that gross economic output will fall by more than a third during the second quarter, which will be the first decline of its kind in the history of the British economy.
As of 10:56 GMT, the
GBP/USD pair traded lower at 1.2542, but still on track for a weekly gain amid
weakness in the U.S. dollar.