GRAPHIC-‘V’ good? How Britain’s economic recovery is shaping up – Reuters

LONDON (Reuters) – Britain’s economy has started to recover from its coronavirus lockdown but signals about a rise in unemployment are raising doubts about how much momentum is building behind the rebound. FILE PHOTO: A shopper is seen walking past social distancing signs following the outbreak of the coronavirus (COVID-19) disease, in London, Britain July…

GRAPHIC-‘V’ good? How Britain’s economic recovery is shaping up – Reuters

LONDON (Reuters) – Britain’s economy has started to recover from its coronavirus lockdown but signals about a rise in unemployment are raising doubts about how much momentum is building behind the rebound. FILE PHOTO: A shopper is seen walking past social distancing signs following the outbreak of the coronavirus (COVID-19) disease, in London, Britain July 1, 2020. REUTERS/Toby Melville/File PhotoBank of England Chief Economist Andy Haldane has described the shape of the economy as “so far, so V”, albeit with big risks ahead. But many economists say the most recent data represents a release of pent-up demand rather than the beginning of a sustained recovery. Most economists in a Reuters poll published this week thought the outlook for the British economy had stayed the same or worsened over the past month. [ECILT/GB] Here are some early indications about Britain’s recovery so far. LAYOFFS RISK The jobs market offers the greatest cause for concern. Searches on Google for the word “redundancy” have jumped, something that turned out to be an accurate predictor of layoffs during the 2008/09 financial crisis, according to Samuel Tombs, an economist at Pantheon Macroeconomics. The proportion of
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