The economy fared much better than expected during the November lockdown, triggering predictions that a vigorous rebound is on the cards.
Output, or gross domestic product, contracted by 2.6 per cent in November, the Office for National Statistics said.
This would still be a large fall during normal times, but is much smaller than the predictions of 5 per cent.
And while it was the first time the economy had shrunk since April in the depths of the first lockdown, November s decline was a fraction of the 18.8 per cent slump recorded that month.
At the end of November, the economy was 8.5 per cent smaller than its pre-virus size. Ruth Gregory, an economist at consultancy Capital Economics, said the Covid-19 economic hole is now far smaller than anticipated.
Dubai: After talks that lasted nearly three years, Britain reaching a momentous deal on the country’s exit from the European Union days before the critical December 31 deadline, is viewed as accelerating the economy’s recovery in the year ahead.
A new era has begun for the United Kingdom after it completed its formal separation from the European Union and stopped following EU rules at 2300 GMT on December 31, as replacement arrangements for travel, trade, immigration and security co-operation came into force.
2021 is bound to be a better year for the economy than 2020, viewed Paul Dales, Chief UK Economist at London-based Capital Economics, late last month, while also noting that that deal removes one potential brake on economic recovery amid a virus-plagued backdrop.
UK economy rebounds in Q3 - China org cn china.org.cn - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from china.org.cn Daily Mail and Mail on Sunday newspapers.
BBC News
By Ben King
image captionMany businesses had to close for most of November
November saw the lowest number of planned redundancies in Britain since Covid lockdowns began, according to Insolvency Service data.
In total 36,700 redundancies were proposed last month, down from a peak of 156,000 in June.
The figures suggest that the chancellor s decision to extend the furlough scheme to the spring has helped to protect jobs.
The data was released in response to a BBC Freedom of Information request.
November saw a lockdown imposed across all of England, and restrictions in force in Wales and Scotland, as coronavirus levels rose.
Fewer redundancies planned after furlough extension
There was a fall in the number of jobs at risk of redundancy in November, despite a second lockdown in England and other restrictions in Wales and Scotland.
Figures released to the BBC in response to a freedom of information request show that employers in Britain were preparing to make 36,700 redundancies last month. That’s down from a peak of 156,000 in June and is the lowest number of planned redundancies since lockdown restrictions were introduced in March.
Under legislation that applies in England, Scotland and Wales, employers must notify the Insolvency Service if they plan to make 20 or more workers redundant in any single “establishment” using a form called HR1.