Comment from Chief Economist, Dun & Bradstreet on ONS Monthly GDP figures

Following the ONS’ monthly UK GDP estimate for April, Markus Kuger, Chief Economist at Dun & Bradstreet said: “The latest real GDP figures show the severe damage the lockdown measures have inflicted on the British economy over recent months. The economy has shrunk by 25% from February to April with almost every sector posting significant contraction. The closure of pubs, restaurants and schools plus a drop in car sales have contributed significantly to the steepest fall on records, and car manufacturing and house building have also been severely affected.

“Worryingly, after several quarters of improvements, proprietary payments performance data from Dun & Bradstreet found that in April, the data analysed across all 16 sectors indicated a deterioration in the percentage of payments made on time. With businesses struggling financially, an increase in late payments is not good news for their cashflow. Following our ongoing analysis of available data, our country risk rating for the UK remains at an all-time low and has dropped five quartiles since the Brexit referendum four years ago. Our outlook for the UK has improved slightly with the gradual lifting of lockdown restrictions but is still rated as ‘deteriorating’.”