A survey of today, Sunday, reported that two thirds of British companies say they are fully operational, after the comprehensive closure imposed by the Corona virus, up from half in June.
Another 21% of the companies, whose opinion polled in the first half of last July, said the Confederation of British Industries, are operating partly in light of the continued closure of some headquarters.”In light of the gradual reopening of companies, this month’s data appears to be a turning point for the economy,” said Albish Palega, economist at Etihad, one of the largest groups representing corporate interests in Britain.
But he added that “many companies, especially in the sectors of direct dealing with consumers, are still experiencing an acute financial crisis.”
Britain is gradually lifting the comprehensive closure since last May, and it was the last big step in the fourth of July, when it was allowed to reopen hotels, bars and restaurants.
However, Prime Minister Boris Johnson said he would postpone further easing of procedures, which would have been helpful to some arts and entertainment venues, due to an increase in injuries.
The companies said on average that they were operating at 85% of the usual energy due to social distance, compared to 72% when a stricter rule imposing a two-meter distance generally between individuals was in effect.
“The weak consumer demand is still the most common challenge faced by companies to resume activities normally,” the Federation of Industries said. More than two-thirds of companies said it was preventing normal operations, a slight decrease from three quarters in June.
The Bank of England will announce the new quarterly forecasts next Thursday, at a time when sectors of the economy are recovering at varying rates of unprecedented economic damage.
Whether the main obstacle to growth is weak consumer demand or difficulties companies face in meeting it, it will be a major factor when the central bank decides on economic stimulus measures later this year.