The UK economy shrank by 2.6% month-on-month after England was placed in lockdown for a second time, according to official figures.
The Office for National Statistics (ONS) said UK gross domestic product at the end of November was 8.5% below its pre-pandemic peak.
The decline came after sixth consecutive months of growth, with a 0.6% improvement in October.
However, the impact of the restrictions under the winter lockdown was not as severe as during the Spring, as more sectors of the economy remained open.
Darren Morgan, director for economic statistics at the ONS, said: ‘The economy took a hit from restrictions put in place to contain the pandemic during November, with pubs and hairdressers seeing the biggest impact.
‘However, many businesses adjusted to the new working conditions during the pandemic, such as widespread use of click and collect as well as the move online.
‘Manufacturing and construction generally continued to operate, while schools also stayed open, meaning the impact on the economy was significantly smaller in November than during the first lockdown.
‘Car manufacturing, bolstered by demand from abroad, housebuilding and infrastructure grew and are now all above their pre-pandemic levels.’
The Bank of England estimates Britain’s economy shrank by just over 1% over the final three months of 2020.
With a new lockdown in place since January the country is still at risk of falling into a double-dip recession.
Friday’s data showed Britain’s economy in November was 8.9% smaller than a year earlier – a smaller drop than the 12.1% some experts had predicted.
In October the economy had been 6.8% smaller than a year before.
At its lowest point in April, when many businesses closed temporarily, output was a record 25% below its year-ago level.
More to follow
source https://metro.co.uk/2021/01/15/uk-economy-shrank-by-2-6-in-november-after-second-lockdown-in-england-13907914/