UK enters recession with hospitality and accommodation hardest hit

Gross Domestic Product (GDP) fell 20.4% in the three months to June compared with the previous quarter, as knock-on lockdown effects were felt. It was the biggest slump since records began in 1955.

Jonathan Athow, the Office for National Statistics’ deputy national statistician said: “The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record.

“It is clear that the UK is in the largest recession on record. Our latest estimates show that the UK economy is now 17.2% smaller than it was in February, the effects of which have been most pronounced in those industries that are most exposed to public health restrictions and the effects of social distancing.”

During the April-June period, the contribution to GDP from accommodation and food services fell 86.7%, the highest of any part of the economy. The next biggest slump was seen in construction, which fell 35%.

“Overall, productivity saw its largest fall in the second quarter since the three-day week. Hospitality was worst hit, with productivity in that industry falling by three quarters in recent months,” the ONS said.