UK tourism outperforms global recovery

Eloise Hanson Eloise Hanson Uploaded 21 September 2020

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UK: According to the Lloyds Bank UK Recovery Tracker, in collaboration with IHS Markit, tourism and recreation in the UK is outpacing international markets.

The tracker provides an insight into the shape and pace of the UK’s recovery following the disruption caused by Covid-19.

In August, tourism and recreation (which includes hotels, restaurants and leisure facilities) posted a PMI reading of 60. A reading over 50 signals output is rising, whereas a reading below 50 indicates output is falling.

Of the 14 UK sectors monitored by Lloyds Bank, tourism and recreation is the latest to join the 12 other sectors that are outperforming international counterparts. The sectors furthest ahead of global benchmarks during August are automobiles and auto parts (77) and healthcare (71).

Transport, which reported a reading of 44, is the only sector to fall behind the global benchmark of recovery. This can be attributed to the restrictions in travel and work-from-home policies that some businesses are upholding. 

Jeavon Lolay, head of economics and market insight at Lloyds Bank Commercial Banking, commented: “The headline findings of this month’s UK Recovery Tracker paint a positive picture, with more domestic businesses outperforming their international counterparts during August. 

He added: “It will be interesting to see the picture in September when the Eat Out to Help Out scheme has ended and the impact of the ‘rule of six’ on sectors that rely on social interaction, such as tourism and recreation, is clearer.”

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