Industrial production decreased
The UK economy contracted in November amid renewed lockdown to contain the corona pandemic. The ONS statistics office announced on Friday that economic output fell by 2.6 percent in a monthly comparison. Analysts had assumed an even greater setback. For November they had expected on average a decline in gross domestic product (GDP) of 4.6 percent.
In October, however, the British economy started the final quarter of 2020 better than initially thought. The statistical office reported a month-on-month increase in economic output by a revised 0.6 percent (previously 0.4 percent). The UK also publishes monthly economic performance data. This is rather unusual in international comparison. In Germany, for example, these data are only presented on a quarterly basis.
In addition, the UK statistics office reported a slight decline in industrial production in November. This had fallen by 0.1 percent in a month-on-month comparison. Analysts were surprised by the development. They had expected an average increase of 0.5 percent. This means that British industrial production has shrunk again for the first time since the Corona slump in spring.
The annual comparison shows how much the corona slump is still having an impact. In October the volume of industrial production was 4.7 percent lower than a year earlier. In the second quarter, British economic output slumped by 18.8 percent quarter-on-quarter due to tough measures to contain the pandemic.