According to the report from Office for National Statistics, real gross domestic product (GDP) increased by 1.2% in December 2020, following a revised 2.3% decline in November, when there were more extensive restrictions to activity. Economists had expected a 1.0% increase.

During December, a period of eased restrictions early in the month was followed by tighter restrictions to activity across all four nations of the UK later in the month. December GDP is 6.3% below the levels seen in February 2020; this compares with 7.4% below pre-pandemic levels in November 2020.

The services sector acted as the main contribution to growth in December, increasing by 1.7% as a number of consuming facing industries reopened following the easing of restrictions in December, as well as strong growth in health (with the strongest contributions coming from the coronavirus testing and tracing schemes). The services sector is now 6.9% below the level of February 2020.

The production sector grew marginally by 0.2% in December 2020, and is now 3.6% below its February 2020 level. Elsewhere the construction sector acted as a drag on growth in December, falling by 2.9% following seven consecutive monthly increases. The construction sector is now 3.5% below the level of February 2020.

Gross domestic product (GDP) grew by 1.0% in Quarter 4 (Oct to Dec) 2020, following revised 16.1% growth in Quarter 3. Despite two consecutive quarters of growth, the level of GDP in the UK is still 6.6% below where it was in Quarter 4 2019, prior to the pandemic.