UK economy shrank by almost a fifth under lockdown

14 Jul 2020

The UK economy shrank by 19.1% in the three months to the end of May as the country struggled under the coronavirus (COVID-19) lockdown, according to the latest data from the Office for National Statistics (ONS).

The economy began to bounce back in May, growing by 1.8% as lockdown restrictions began to ease. However, a record drop of 20.4% in April, which was preceded by a 6.9% fall in March, meant the economy shrank during the quarter.

Although the economy rebounded in May, the growth rate expansion was less than the 5% or so that economists predicted. The data came as sectors such as manufacturing, construction, DIY retailers and garden centres were allowed to reopen.

The manufacturing and construction sectors both grew by more than 8% during the month.

Commenting on the data, Jonathan Athow, Deputy National Statistician for Economic Statistics at the ONS, said: 'The economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.

'In the important services sector, we saw some pick-up in retail, which saw record online sales. However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.'

Home | Contact us | Accessibility | Disclaimer | GDPR (including Standard Terms of Business) | Help | Site map |

© 2020 BPU Accountants. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


BPU Chartered Accountants is the trading name of BPU Ltd Company number 3723948 registered in Wales. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

BPU Financial Solutions Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority. ValidPath Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference 197107.

BPU Accountants, Radnor House, Greenwood Close, Cardiff Gate Business Park, Cardiff CF23 8AA
BPU Accountants, The Counting House, Pound Field, Llantwit Major, Vale of Glamorgan CF61 1DL