Britain may be headed for a double-dip recession after gross domestic product (GDP) fell 2.6 percent in November, the Office for National Statistics (ONS) reported Friday.
November’s contraction came after six months of consecutive growth.
The U.K.’s economy is now 8.5 percent below February 2020 levels, the ONS said. The services sector fell 3.4 percent from October, the third-largest drop since records began in 1997, the ONS said. The services sector is now 9.9 percent below its February level, the ONS said.
â€œThe economy took a hit from restrictions put in place to contain the pandemic during November, with pubs and hairdressers seeing the biggest impact,â€ said Darren Morgan, director for economic statistics at the ONS.
The economic fall occurred at a time when the government imposed its second national lockdown in England and restrictions tightened across the rest of the U.K. in response to the second wave of the coronavirus pandemic. However, the drop was significantly milder than the almost 20 percent recorded in April during the first lockdown, because businesses adjusted to the new working conditions and manufacturing as well as construction generally continued, the ONS said.