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A new study found that January lockdown restrictions resulted in UK economic output not falling since April 2020. However, economic activity has been significantly higher than it was then as businesses adjusted to current restrictions.

Production refers to the total production of goods and services by an entire country over a period of time – its gross domestic product. The term can refer to any work, energy, goods or service produced by a person, company, factory or machine. Production in the country fell to a seven-month low at the start of the year, according to the BDO Output Index, which provides a comprehensive snapshot of business performance by weighting macroeconomic data from the UK’s top corporate surveys.

The consultancy found that business performance declined 5.38% in January 2021, to a BDO index score of 70.44, with the service sector driving the decline. After taking the brunt of lockdown restrictions as all non-essential businesses remain closed to the public, production declined for the third consecutive year in January.

In this context, the BDO Optimism Index also reached a six-month low, as it fell from an index value of 86.96 to 86.34 points in January. While a Brexit deal completed in late December should shed some light on the UK’s future relationship with Europe, optimism has waned since difficulties began to emerge in trade with the EU, as businesses continued to search for checks and delays and bureaucracy. Coupled with the decline in production, this could decrease further in the coming months.

However, BDO found room for optimism. While the service industry players were able to struggle with closed stationary presences, other sectors were well equipped to adapt to the situation. According to BDO, while economic activity declined significantly in January, while production was generally significantly higher than in April 2020. This shows how companies have had time to adjust to the current restrictions, which means that many continue to adhere to some level Can provide terms of use, terms and conditions. This could help boost business optimism in the coming year.

BDO partner Kaley Crossthwaite said the numbers showed the strength of the UK business, saying, “While these numbers illustrate the severity of the impact national lockdowns have on the economy, they also show the resilience of UK companies, many of which have developed New processes, products and services that enable them to continue trading. Given that the government will be phasing out the country’s “route map” in the coming weeks and the successful rollout of vaccinations in the UK continues, sentiment is likely to rebound and disrupt trade across the state and the channel will become more state-run Support minimized. “