Business activity in the East Midlands has fallen at a record pace due to the coronavirus crisis, a new study has found.
According to the latest NatWest PMI report for the East Midlands, in April, the region saw a sharp decline in output, new orders and employment.
Overall, the survey of private sector firms indicated the most severe decline in business activity since data collection began in January, 1997.
The report said that emergency public health measures, including lockdowns and social distancing, forced many businesses to close temporarily and caused client demand to slump, with new orders falling “substantially”.
Subsequently, companies reduced workforce numbers “significantly” as business confidence dropped to a series low.
The study said that in an attempt to retain clients, firms passed lower costs onto clients through reduced charges.
John Maude, from the NatWest Midlands and East Regional Board, said: “The temporary closure of businesses and slump in client demand following the escalation of Covid-19 emergency measures drove an unprecedented decline in business activity across the East Midlands in April.
“Manufacturers and service providers alike suffered from the collapse in new orders, with many reducing selling prices in an effort to bolster demand.
“Consequently, companies cut employment at a record pace.
“Despite many mentioning the use of the Government furlough scheme in the hope that demand perks up after lockdowns are eased, others stated that necessary job losses were made to temporary and agency staff.
“East Midlands firms’ output expectations dropped to a series low, as grave concerns surrounding the state of the economy following the COVID-19 outbreak weighed on demand.
“Nonetheless, companies still expect business activity to rise over the coming year.”
