Business activity in the South East fell by its fastest rate in more than a decade as the coronavirus crisis and national lockdown took its toll on the region's economy.
The latest NatWest PMI data showed that in March, the region saw the fastest fall in incoming new business since the survey started in January 1997.
As demand weakened firms cut staff numbers, with the rate of job cuts at its highest level since June 2009.
That meant that the headline NatWest South East Business Activity Index, which measures the combined output of the region’s manufacturing and service sectors, stood at 37.2 in March - a big fall from 52.0 in February. Any figure below 50 shows a contraction.
Stuart Johnstone, NatWest managing director, London & South East, corporate and commercial banking, said: “Business activity in the South East’s private sector contracted at the fastest pace since November 2008 during March, with incoming new business declining at the most marked rate since data collection began in January 1997. Panellists linked declines in both activity and order book volumes to the COVID-19 pandemic.
“Meanwhile, firms reduced workforce numbers further, with the rate of job shedding the quickest since the global financial crisis in June 2009. Furthermore, firms’ confidence with regards to output over the coming year plummeted, indicative that the impact of the pandemic will be both far reaching and significant.”
