Data Watch CQ2 2021

Consumer spending was materially curtailed during the Government imposed lockdowns during April 2020 and January 2021, as economic uncertainty constrained consumer activity.

The RSI observed sustained improvement in summer 2020 as restrictions were eased, with a similar trend observed during March 2021 as positive announcements regarding vaccine development were made.

Whilst the outlook now appears positive and could give rise to inflationary pressures, trustees should equally remain cognisant that government measures that have supported businesses throughout the pandemic will be withdrawn and create challenges for some sponsors. Trustees should engage with their sponsor(s) to understand the covenant implications of the end of lockdown in greater detail.

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