November lockdown wipes out summer gains as businesses predict a blue Christmas
The Opinium-Cebr Business Distress Tracker checks the pulse of the UK business community on a monthly basis, as firms across the country grapple with the unprecedented challenges brought about by the coronavirus crisis.
The latest results showed that the UK’s 2nd lockdown in November wiped out the summer gains, with a blue Christmas expected for 2020.
- During the second national lockdown in November, businesses’ profits were on average 20% lower than usual for this time of year as a result of coronavirus-related restrictions. The previous month, profits were down by just 15%, highlighting that the tightening of restrictions caused the UK to take a large step backwards in its economic recovery.
- The latest wave of the Opinium-Cebr Business Distress Tracker also sheds light for the first time on the differential economic impacts of the 3 COVID-tiers. Tier 1 restrictions suppress businesses’ profits by 13% while Tier 2 restrictions suppress businesses’ profits by 15%. The major damage takes place in Tier 3, where businesses’ profits are reduced by an average of 25%.
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