UK business output plummets to nearly year low
The impact of lockdown restrictions in January caused UK business output to fall at a rate not seen since April 2020.
Business output in January 2021 fell by 5.38 points to a near year low, according to consultancy firm BDO, with the service sector driving the decline.
Despite business output falling, economic activity was significantly higher than in April 2020. BDO said this was largely because businesses have had time to adapt to the current restrictions, meaning many are able to continue to provide some level of service.
BDO’s report also found optimism hit a six-month low, as difficulties emerged about trading with the EU despite the Brexit agreement, and new coronavirus variants continued to place a burden on the UK’s handling of the pandemic.
BDO partner Kaley Crossthwaite said the figures illustrated both the severity of the impact of a national lockdown, and the resilience of UK business.
“With the government expected to outline the nation’s ‘route map’ out of lockdown in the coming weeks and as the UK’s successful vaccination rollout continues, sentiment should rebound providing disruption to trade across the channel is minimized with further government support,” she added.