UK GDP fell 2.6% in its second national lockdown in November.
The economy has halted, potentially finishing its sixth straight month of growth as it could be the first step towards a double-dip recession.
The economy may have shrunk, but not as much as the 5.7% that economists were hoping for.
“After six consecutive increases per month, including an October 0.6% increase, Real Gross domestic production (GDP) fell 2.6% in November 2020,” ONS said.
“During November, all four UK countries had restrictions in place to a degree.”
New statistics show that the economy in November was 8.5% smaller than the month before the pandemic.
The biggest fall was in the services sector. The sector shrank by 3.4% when pubs and restaurants were closed. Production fell by 0.1% and construction increased by 1.9%.
ONS commented: “There was output in all 14 service subsectors between October and November 2020. The biggest contributors this fall were accommodation and food service activities, followed by wholesale and retail, and other Service activities, the arts and entertainment followed, and recreation due to the reintroduction of restrictions in some parts of the UK. These four sectors account for almost 80% of the decline in services. ”
Rishi Sunak commented on what the new GDP figures meant for the country.
“But there is a reason to hope. Our vaccine rollout is going well and through work planning, we are creating new opportunities for those in the most needy. This support and With the resilience and business of the UK, we will get through this,” he added.
Douglas Grant is the director of Conister, part of the Manx Financial Group, where AIM is listed. He commented on the new GDP figures. “While a major part of the UK entered a second lockdown, an economic contraction was expected in November, the decline in production remains the cause of concern for many companies, and they are currently facing. It reflects the dire situation that is currently being done. We must now ensure that the economic security of sustainable businesses can flourish in the future.
“To date, BBL and CBIL have played a fundamental role in keeping many small businesses alive, acting as important triage systems to identify and support eligible businesses that require credit. However, , we believe we have now passed this stage and we must realize that many companies cannot withstand this pandemic, especially companies with unsustainable debt burdens. Now, I It will be essential in the future to focus on identifying and protecting the most resilient business sectors.”
