UK economy shrinks by one-fifth under lockdown

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The UK's economy shrank by 19.1% in the three months to May, as the full impact of lockdown was felt, the Office for National Statistics has said.

The economy actually grew by 1.8% in May, but this was not enough to make up for the fall of 6.9% in March and the record 20.4% decline in April.

Manufacturing and house building showed signs of recovery in May as some businesses saw staff return to work.

Despite this, most of the economy was “in the doldrums”, the ONS said.

“The economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck,” said Jonathan Athow, deputy national statistician for economic statistics at the ONS.

“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.”

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Media caption'We need a date to restart so we can save our staff'

May's modest month-on-month expansion was less than the 5% or so that economists had expected.

It came as sectors such as manufacturing, construction, DIY retailers and garden centres were allowed to reopen.

Manufacturing grew by more than 8% during the month, as did construction.

“Today's figures underline the scale of the challenge we face,” said Chancellor Rishi Sunak.

I know people are worried about the security of their jobs and incomes. That's why I set out our Plan for Jobs last week, following the PM's new deal for Britain, to protect, support and create jobs as we safely reopen our economy.

“Our clear plan invests up to £30bn in significant and targeted support to put people's livelihoods at the centre of our national renewal as we emerge through the other side of this crisis.”