Some companies that have had to furlough workers appear to be judging that applying for the government’s wage subsidy programme is more trouble than it’s worth. Nonetheless, the number of firms receiving the subsidy has risen sharply in recent weeks so we still think the scheme will drive a rebound in household incomes. Meanwhile, bankruptcies plunged to a 54-year low in May. While some of that was down to a reduction in court operations last month, it was also a sign that government support is succeeding in keeping struggling small firms afloat.
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