Call 020 7794 5757 - Email info@numerallp.com

UK economy shrank in January, data reveals

The UK economy shrank by 2.9% in January as the third coronavirus (COVID-19) lockdown took its toll and Brexit hit exports, according to the latest figures from the Office for National Statistics (ONS).

18 Mar 2021

The UK economy shrank by 2.9% in January as the third coronavirus (COVID-19) lockdown took its toll and Brexit hit exports, according to the latest figures from the Office for National Statistics (ONS).

The ONS said that the drop was caused by declines in retail trade and education as non-essential shops and schools were closed across the UK. Although the drop was less than feared by some analysts, the UK economy is now around 9% smaller than in January 2020.

Exports of goods to the EU plunged by almost 41% in January, while imports from the bloc dropped by 28.8%, the ONS reported.

Commenting on the data, Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said: 'Activity fell in January as widely expected, with much of the UK entering some form of lockdown at the start of the year. However, the decline was notably smaller than the first lockdown in spring 2020, demonstrating the growing ability of businesses and households to adapt to greater restrictions on mobility.

'There are reasons for optimism, with vaccine rollout proceeding at pace.'

Newsletter sign-up

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign-up today

Try a site search Tax return, dividends, pension, autumn statement...

Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

© 2024 Numera. All rights reserved. We use cookies on this website, you can find more information about cookies here.