COVID-19: listening to the heartbeat of recovering industries

The bounce-back in share prices in sectors hardest hit by the COVID-19 shock reflects strong economic momentum. However, these sectors also lag on the path back to normal.

Key takeaways

  • The sectors hit hardest by the COVID-19 shock include leisure, hospitality, transport and construction.
  • Leisure and hospitality have the longest way to go in recouping pandemic-induced losses, even though sector equities are showing strong gains.
  • Looking at financial markets alone does not reveal the full picture. Equity markets tend to move more in tandem with sector momentum than with the distance travelled on the path back to normal.
  • The sectors with highest momentum tend to be those that still lag in the recovery journey: hardest hit are the leisure and hospitality sectors.
  • These will also be most vulnerable to a second round of infections and renewed lockdown measures.

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Economic Insights COVID-19: listening to the heartbeat of recovering industries


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