Britain’s economy shrank by 2.6% in November, the first monthly fall in output since the depths of an initial COVID lockdown in April, as new restrictions were imposed on much of the country to slow the spread of the disease.
Output is now 8.5% below its pre-pandemic peak.
Services fell 3.4% (9.9% below peak), manufacturing grew 0.7% (4.9% below peak) and construction grew 1.9% (0.6% above peak)
Alpesh Paleja, CBI Lead Economist, said:
“With the country locked down for virtually all of November, the reduction in economic activity comes as no surprise.
“But, as expected, the impact of the second lockdown was significantly smaller than the downturn seen in the spring. Steps taken by businesses earlier in the year to Covid-proof their operations – combined with the time-limited nature of the restrictions, and schools remaining open – meant more companies were able to continue trading safely.
“However, the tougher current lockdown means a bigger hit to the economy lies ahead. Nonetheless, with vaccine rollout gathering pace, there are tangible reasons for optimism later in 2021.
“Getting on top of the pandemic remains key to reigniting the economy. Businesses stand ready to lead the revival and continue to look to the Government to help them through to the recovery phase.”
