UK economy shrinks in November, ending six consecutive months of growth

Gross domestic product dropped 2.6% during the month according to the Office for National Statistics (ONS), leaving it 8.5% below its pre-pandemic peak.

The decline in the economy during November came following a run of six consecutive months of growth. In October, UK GDP grew 0.6%.

However, the November slowdown was less than some had feared following the government’s introduction of more stringent social distancing restrictions.

The services sector, which includes many shops as well as locations such as pubs and hairdressers, contracted 3.4%, the ONS said.

That left the sector 9.9% smaller than it was prior to the pandemic last February.

ONS director of economic statistics development Darren Morgan 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.”

Morgan added that the impact on the economy was “significantly smaller” in November than it was during the first national lockdown because the manufacturing and construction industries were able to continue operating.

According to the ONS, car manufacturing, housebuilding and infrastructure all grew during November and are now above pre-pandemic levels.