UK heading for double-dip recession as GDP slumps in November

The UK economy is heading for a double-dip recession, after the Office for National Statistics (ONS) confirmed that coronavirus restrictions held back growth in November.

Following six consecutive monthly increases – including an upwardly revised 0.6% in October – real gross domestic product (GDP) fell by 2.6%.

The services sector acted as the main drag on growth in November, falling by 3.4% as restrictions on activity were reintroduced in some parts of the UK in response to the pandemic. The services sector is now 9.9% below the level of February 2020.

The production sector also fell marginally by 0.1%, remaining 4.7% below the pre-pandemic level.

Elsewhere, the construction sector saw positive growth of 1.9% in November, recovering to 0.6% above the February 2020 level.

There were falls in output in all 14 services sub-sectors between October and November. The largest contributor to this fall was accommodation and food service activities,

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