UK economy enters next phase of reopening

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Prosperity Investment Management provides you with a weekly update from markets across the globe.

Starting in the UK, England moves to the second phase of its “road map” for lifting the lockdown today - with outdoor pubs, non-essential shops, hairdressers, indoor gyms, and other facilities allowed to reopen. The UK government has also announced a framework for the resumption of international travel, which could begin to take effect on May 17, at the earliest.

The Labor Department reported that employers added 916,000 jobs in March, well above consensus estimates of around 650,000, and the most since last August. The reopening of bars and restaurants and the rebound in travel were clearly at work, with 280,000 jobs added in leisure and hospitality industries.

Economic data over China’s Qingming holiday weekend (April 3 to 5) showed a recovery in domestic tourism close to pre-pandemic levels. Box office and cinema admissions also rebounded strongly from 2019 levels to set new records. However, tourism revenue over the long weekend slumped from 2019, a drop that analysts attributed to shorter visits and price discounts.