// November GDP declined by 2.6% month-on-month, says the ONS
// GDP was also 8.5% below its pre-pandemic peak and is expected to fall further after the 3rd lockdown
// Economists warn if a double-dip recession if restrictions remain in place in the first 3 months of 2021
The UK economy is on track to head back into recession as official figures showed that it fell in November after England was placed into a national lockdown for a second time.
The ONS said UK gross domestic product (GDP) declined by 2.6 per cent month-on-month in November.
GDP at the end of the month was 8.5 per cent below its pre-pandemic peak but is expected to fall further after a third lockdown took hold this month.
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November’s decline came after six consecutive months of growth, with a 0.6 per cent improvement in October.
The latest figure was as bad as analysts had feared, who had initially forecast a 4.6 per cent decline for November.
Nonetheless, economists warned that the UK is set to see a double-dip recession if restrictions remain in place in the first three months of 2021.
“The economy took a hit from restrictions put in place to contain the pandemic during November, with pubs and hairdressers seeing the biggest impact,” ONS economic statistics director Darren Morgan said.
“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.”
with PA Wires
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