The UK economy is on the brink of a double-dip recession after it shrank 2.6% in November amid surging COVID-19 cases

The UK economy is on the brink of a double-dip recession after it shrank 2.6% in November amid surging COVID-19 cases

The UK economy shrank by 2.6% in November as England entered another lockdown.

Britain is on the brink of a double-dip recession and faces a tough winter as COVID cases rise.

Yet a fast vaccine rollout could help the economy recover in the spring and summer.

The UK economy shrank 2.6% in November as an increase in coronavirus infections and fresh restrictions exacted a heavy toll, official figures have shown, putting the country on track for a double-dip recession.

November's drop was considerably lower than the 5.7% contraction economists predicted in a Reuters poll. But it meant the economy was 8.5% smaller than it was in February 2020, having been 6.1% smaller in October, the Office for National Statistics said.

Since November the UK government has tightened lockdown measures, meaning more pain is yet to come for the economy.

Ministers are focused on rolling out coronavirus vaccines, however, which they hope will allow growth to start bouncing back in the spring.

The 2.6% contraction in November, when England was placed into a month-long lockdown, followed an expansion of just 0.6% in October.

Britain's all-important services sector shrank 3.4% in November, the ONS