Report July 2021

In a nutshell

We analyse Companies House “basic company data” up to the June 30th, 2021. We note a slowdown in company registration relative to June 2020. However, firm creation remains stronger than the same period in 2019.

Highlights

  1. Business creation decreased 4.6% between May 2021 and June 2021.
  2. Business creation was 18% lower in June 2021 than in June 2020.
  3. The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’, ‘Manufacturing’ and ‘Financial and insurance activities’ sectors.

Aggregate Analysis

Daily

The chart below shows the daily company incorporations in the UK since January 2020. The lockdown periods correspond to our key dates timeline. Lockdown-III eases further on April 12, 2021 (pubs, restaurants, hairdressers, gyms and non-essential shops can reopen). In terms of restrictions, no changes occur since May 2021.

Jan 2020Apr 2020Jul 2020Oct 2020Jan 2021Apr 2021050010001500200025003000350040004500
Median (total)Median (during lockdown I)Median (post-lockdown I)Median (during lockdown II)Median (post-lockdown II)Median (during lockdown III)Median (post-lockdown III)Daily Company RegistrationsNumber of registrations
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  • Business creation decreased 4.6% between May and June 2021.
  • 21,475 additional companies were registered in June 2021 relative to June 2019.
  • 13,406 less company registrations are noticed in June 2021 relative to June 2020.
  • The median daily registrations were 43% higher in June 2021 than June 2019.

The chart below shows the rolling average of firm creation since January 2019. Shaded areas correspond to lockdown periods as shown our key dates timeline.

Apr 2019Jul 2019Oct 2019Jan 2020Apr 2020Jul 2020Oct 2020Jan 2021Apr 2021050010001500200025003000
7-day rolling average of company registrationsNumber of registrations
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Relative

Company registrations persistently exceed their 2019levels. This effect is strong regardless the third national lockdown. However, a slowdown is noticed in June 2021 relative to June 2020.

10203040500.511.52
2021/20192020/2019Ratio of company registrations​(Same week of reference in 2019)​WeeksRatio
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June

Daily average company registrations in June 2021 are 18% lower than June 2020, but 54.22% higher than June 2019.

20192020202105001000150020002500
Daily median company registrations in JuneNumber of registrations
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Regional Analysis

Postcode Area

The map shows the percentage change in new registrations in June 2021 compared to June 2019.

Country

The following graph aggregates business creation by country. London, followed by England, dominates business registrations.

510152025050100150200
England (excl. Ldn)Northern IrelandScotlandWalesLondonChange of company registrations in June by Country​(Same week of reference in 2019)​Weeks% change
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London

Within London, most of the business creation in June 2021 comes from Central, East and North London.

5101520250100200300400
Central LondonEast LondonNorth LondonSouth East LondonSouth West LondonWest LondonChange of company registrations in June by London Areas​(Same week of reference in 2019)​Weeks% change
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Sectoral Analysis

SIC Sections

The graph illustrates company registrations in June 2021 relative to 2019 by industrial sector. It compares the percentage change in 2021 relative to 2019 for each week of the year. We use 4-digit SIC levels (ONS “Classes”) and group them into broader sectors (ONS “Sections”). We use the ONS classification. We show a selection of sectors that present notable changes.

510152025−50050100150200250300
Accommodation and food service activitiesAdministrative and support service activitiesArts, entertainment and recreationConstructionFinancial and insurance activitiesManufacturingReal estate activitiesTransportation and storageWholesale and retail trade; repair of motor vehicles and motorcyclesChange of company registrations by sector​(Same week of reference in 2019)​Weeks% change
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  • June 2021 retains higher firm creation in most sectors than June 2019.
  • ‘Wholesale, and Retail Trade’, ‘Manufacturing’, and ‘Financial and insurance activities’ sectors keep showing the greatest increase in firm creation in June 2021.
  • Compared to June 2019, in June 2021 there is more than a 300% increase in business creation for ‘Removal services’, ‘Wholesale on a fee or contract basis’1, ‘Retail sale via mail order houses or via Internet’ and ‘Wholesale of electrical household appliances’.
  • There are lower registrations relative to June 2019 in ‘Packaging activities’, ‘Warehousing and storage’ and ‘Service activities incidental to land transportation’.

  1. It regards the classes of ‘Agents involved in the sale of furniture, household goods, hardware and ironmongery’ and ‘Agents involved in the sale of agricultural raw materials, live animals, textile raw materials and semi-finished goods’. ↩︎

Last updated on Aug 6, 2021