Thread by @julianHjessop

Three reasons why I expect a #vshapedrecovery in the UK economy, using the analogy of a car...

1. Activity slumped in March in April because #Covid slammed on the brakes. Now the foot is off: the #lockdown is being lifted and consumers are regaining confidence to spend again...

2. The car was in pretty good condition before the pandemic struck. In particular, the UK’s relatively flexible economy and labour markets are good at creating #jobs to replace those that are lost (#unemployment was <4% at the start of 2020, compared to >7% in the euro area)...

3. Most commentators seem to be looking in the rear mirror – e.g. at Q2 #GDP, or how many people have been on #furlough. But more timely surveys and hard data show that the speedometer is gradually climbing. And there is a tank full of pent-up demand.