Call us today

UK economy shrinks less than first feared after second national lockdown, economists reveal

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

UK economy shrinks less than first feared after second national lockdown, economists reveal

The UK economy shrunk less than first feared during the second national lockdown, a major report has revealed.

But the Office for National Statistics (ONS), who published the figures, said the economy is likely to decline again before it recovers.

According to the research, gross domestic product (GDP) fell by 2.6 per cent in November 2020 – 8.5 per cent below the level of February 2020 – following the launch of the second national lockdown in England and tighter restrictions in Scotland, Wales and Northern Ireland.

While ending six months of consecutive growth, economists had forecasted a sharper monthly fall of 5.7 per cent, suggesting business has remained largely resilient.

However, the ONS statisticians warned of a second successive fall this month following the launch of the third national lockdown, forcing all but essential businesses to close.

The figures suggest that businesses forced to close for much of the year – such as the services sector (representing 80 per cent of the economy) and the drinks and hospitality industry – experienced the largest impact. The services sector, for example, fell by 3.4 per cent and is 9.9 per cent below the level of February 2020.

The UK’s manufacturing and production sector continued to operate throughout the lockdown, however, which is reflected by a fall of just 0.1 per cent over the same period. The construction sector, meanwhile, continued to grow at a rate of 1.9 per cent.

The report comes after the largest fall in GDP since records began in April 2020, which saw the UK economy as a whole shrink by some 18.8 per cent.

Click here to access the ONS report.

For help and advice with related matters, please get in touch with our expert team today.

Top

Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is enquiries@orchardaccountants.co.uk.

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it