Covid-19 has brought about many difficulties for businesses in the UK. From a loss of demand, to new policies for social distancing, most enterprises have seen their resilience tested and have had to adapt to new ways of working in 2020.
This report, for E.ON, measures the impact of the Covid-19 crisis on a range of business sectors and areas of the country from both a qualitative and quantitative perspective. On the quantitative side, a new tracker of business activity amid the Covid-19 pandemic has been developed.
The tracker itself is made up of 20 indicators capturing business responses to tougher trading conditions, focusing on three perspectives: the extent of reliance on government support schemes and business cost reduction measures, an analysis of business performance, and trading conditions, and also consumer activity indicators such as restaurant bookings and footfall at retail centres.
These three indicators are assigned a value between 0 and 100 points, where 100 is the highest value in the history of the indicator, representing strong business activity with no impacts of coronavirus being experienced by UK firms.
Tracking economic performance since the beginning of lockdown, this report finds that after four months of economic improvement throughout the summer, the overall Covid-19 business impact tracker flattened off between August and October, as signs of a second wave of infections emerged. The index stood at 52 points (out of 100) in August and September, before falling again slightly to 51 points in October.