BDO: Business output fell to lowest levels on record in 2020
UK business output fell to its lowest ever levels in 2020 due to the coronavirus pandemic, a new survey by accountants BDO has found.
BDO’s output index averaged 73.62 last year, the lowest figure since the measure was introduced in 2005.
Previously, the lowest annual average had been 83.28, which was recorded during 2009’s financial crisis.
A score of 95 or more indicates growth. The index increased a mere 0.07 points in December, when the second national lockdown was lifted.
Commenting on the results, Kaley Crossthwaite, partner at BDO, said: “These figures reinforce just how stark the economic impact of the pandemic has been.
“As we enter a third national lockdown, crippling challenges will continue to plague businesses in the weeks and months ahead. Successful and rapid roll-out of COVID-19 vaccines will be the single biggest driver of business recovery.”
Business optimism did increase at a quicker rate in December, BDO found, as the government began to rollout the coronavirus vaccine.
However, this uptick in confidence is expected to be shortlived due to the new national lockdown.
The report also found that the rate of UK employment continued its downward trajectory for a second consecutive month in December, declining by 0.59 points to 108.15.
The latest data suggest that the slow but steady trickle of job losses continued at the end of the year, with the latest lockdown likely to place further pressure on the BDO Employment Index in the months ahead.