Firm Creation in the UK During the Covid-19 Lockdown

Abstract

We use near real-time data on business creation in the UK to assess the effect of Covid-19 lockdown policies on economic activity. We find that business creation is 3.4% less over the period from 23 March to June 30 than the same period in 2019, with June figures showing a strong recovery. Overall, there were 7,107 fewer companies registered during this period than in the same period last year. The construction sector has recovered strongly in May and June from being among the hardest hit in April. The retail sector remains the most adversely affected.

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