UK government borrowing to surge as Covid-19 recession hits – business live

Rolling coverage of the latest economic and financial news

7.45am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A fresh blizzard of data today will show us just how badly the world economy is suffering from the Covid-19 downturn.

Sentiment clearly remain fragile and that could be magnified with the release of the PMI readings for the UK and Eurozone.

The service sector accounts for 80% of UK economic activity. In March the UK service sector contracted at the fastest pace on record, dropping to 34.5 on the index. And that was only the beginning of lock down! This months’ reading is expected to dive deeper into contraction territory to 29.

Over the last 4 weeks, a cumulative total of more than 22m claims have been made, which is around the number of jobs that were created in the decade of expansion. So it’s no exaggeration to call the scale of the declines unprecedented.

Two highlights today

– & Flash PMIs (Apr):Services & composite set to print fresh record lows, watch supplier deliveries impact on manufacturing

– Initial Jobless Claims (Apr 18): Pace of claims set to slow slightly, but still elevated, exp. 4.15mln

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