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- UK GDP fell less than expected in January
UK GDP fell less than expected in January
According to the report from Office for National Statistics, UK gross domestic product (GDP) is estimated to have fallen by 2.9% in January 2021, as government restrictions reduced economic activity. Economists had expected a 4.9% decrease.
The output approach to GDP shows that January’s level was 9.0% below that seen in February 2020 and was 4.0% below levels seen in October 2020, the initial recovery peak. Overall, all main sectors of GDP remained notably below their pre-pandemic (February 2020) levels and all were lower than in October 2020.
The services sector acted as the main drag on growth in January, decreasing by 3.5% as restrictions on activity were reintroduced in response to the coronavirus (COVID-19) pandemic. The services sector was 10.2% below the level of February 2020 compared with 4.9% below the level seen in October 2020.
The production sector fell by 1.5% in January 2021 following eight months of consecutive growth. The sector was 5.0% below its February 2020 level.
The construction sector saw positive growth of 0.9% in January, after a decline of 2.9% in December 2020. The construction sector was 2.6% below the level of February 2020.
GDP contracted by 1.7% in the three months to January 2021, down from a 1.0% growth in the three months to December 2020.
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