UK heads towards double-dip recession as GDP falls 2.6%
The UK economy shrank by 2.6% month-on-month in November after England was placed in lockdown for a second time, according to official figures.
The Office for National Statistics said UK gross domestic product at the end of November was 8.5% below its pre-pandemic peak.
November’s decline came after sixth consecutive months of growth, with a 0.6% improvement in October.
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.”