Pimms may bubble post-lockdown, but the future for many is less cheery | Larry Elliott

  • Date: 15-Apr-2021
  • Source: The Guardian
  • Sector:Economy
  • Country:Saudi Arabia
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Pimms may bubble post-lockdown, but the future for many is less cheery | Larry Elliott

Whisper it softly, but things are starting to look up for the UK economy. Evidence is starting to accumulate that the easing of lockdown restrictions is allowing activity to return to something like normal.Naturally enough, there are plenty of caveats. A new and more virulent strain of the virus could sweep across the country leading to the shutters going down again on businesses that have only just opened.The Bank of England's latest data on corporate default rates is also a bit sobering. While big companies are holding up well, the number of small firms defaulting rose in the first three months of 2021 and is expected to rise again in the second quarter. More medium-sized companies expect to face difficulties as well.On the other hand, the real time news from the Office for National Statistics is modestly encouraging. Restaurant bookings are up, and online job adverts are at their highest since before the country first went into lockdown. There was a marked increase in opportunities in catering and hospitality, a particularly hard-hit sector.On 12 April, the day non-essential retail stores were allowed to reopen, the volume of motor vehicle traffic on the roads was 91% of its pre-pandemic level: a