The IHS Markit/CIPS Flash UK Composite Purchasing Managers’ Index (PMI) fell to a record low of 12.9 in April from 36.00 in March, indicating a huge contraction in the world’s fifth-largest economy.
Goldman Sachs analysts are of the opinion that the record low PMI corresponds with a gross domestic product (GDP) contraction of 15%, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio.
A Reuters poll of economists on Thursday pointed to a roughly 13% contraction in the UK economic output in the second quarter, which would be the biggest since the Second World War.
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