Eco­nomic week ahead

The Daily Telegraph - Business - - Business -

A record­break­ing plunge in eco­nomic ac­tiv­ity is ex­pected to be fol­lowed by a record-break­ing surge when May’s GDP fig­ures are un­veiled to­mor­row.

Fore­cast­ers have pre­dicted out­put will jump 5.3pc com­pared to the pre­vi­ous month as the econ­omy started to re­open.

That will put a small dent in the 20pc plum­met in GDP recorded dur­ing lock­down in April but an­a­lysts ex­pect the re­cov­ery to con­tinue gath­er­ing pace as shops, pubs and restau­rants re­open. The pace of the re­bound will be watched closely with Bank of Eng­land chief econ­o­mist Andy Hal­dane ar­gu­ing that a V-shaped re­cov­ery is on the hori­zon.

Else­where, more hints on the blow Covid-19 has dealt the jobs mar­ket will be re­leased on Thurs­day.

Wage growth is ex­pected to turn neg­a­tive for the first time in six years. City fore­cast­ers ex­pect av­er­age weekly earn­ings in­clud­ing bonuses to fall 0.5pc in the three months to May com­pared to a year ear­lier, a slump big­ger than any seen in the fi­nan­cial cri­sis.

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