MNI BRIEF: UK Business Expectations Edge Up In Nov: BOE Survey

There was a modest uptick in UK business expectations as positive news on Covid-19 vaccines came through, the Bank of England's November Decision Makers' Panel survey showed. The survey, published Thursday, found businesses expected employment to be 6% lower in Q4 and Q1 2021 than it would have been absent Covid-19, compared to -8% and -9% respectively in the October DMP.

Sales in November were reported to be 15% lower than they would have been without Covid-19 but they were then expected to recover fairly swiftly back towards normality, coming in at 11% down in Q1 next year and just 2% down in Q2 2021. The survey is broadly compatible with Covid-19 effects fading away in the second half of 2021.

BOE policy makers have been talking about bridging across to the post pandemic world and the Bank's own survey suggests businesses expect sales to rebound, although employment may well lag.