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Hit to employment to prevent a perfect V-shaped recovery

The big declines in retail sales volumes in March and in the PMI activity surveys in April make it clear that the slump in activity has been unprecedented in terms of its speed and its severity. We continue to believe that economy has contracted by 25% from peak to trough. Perhaps even more worrying are the growing signs of widespread job cuts, the adverse effects of which will prevent a perfect V-shaped recovery.

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