The Office for National Statistics (ONS) has said the UK economy shrank by 2.6 per cent in November. This came following increase of 0.6 per cent in October and previous sixth consecutive months of growth.
This is the first drop since April, at the start of the pandemic.
Andrew Bailey, Bank of England Governor, warned that the UK economy is facing its “darkest hour” following a spilt among policymakers about whether interest rates should be slashed below zero, to help economic growth.
The latest figures was ahead of predictions of a 4.6 per cent decline for November but economists have warned that the UK could face a double dip recession if the current lockwdown continues for any length of time.
The November lockdown and closure of businesses in the hospitality sector such as pubs, bars, restaurants, shops and hairdressers meant the sector shrank by 3.4 per cent. The ONS reported that the services sector is now 9.9 percent below the level it was at was February 2020.
