Report June 2021

In a nutshell

We analyse Companies House “basic company data” up to the May 31st, 2021. We note a similar strength of new company registration. Lockdown-III period has not altered the business setup observed the last few months.

Highlights

  1. Business creation decreased 5.8% between April 2021 and May 2021.
  2. Business creation was 13.5% higher in May 2021 than in May 2020.
  3. The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ and ‘Manufacturing’ 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). On May 17, 2021 indoors hospitality is allowed. For our analysis, we treat April 12th as the end of lockdown-III.

Jan 2020Mar 2020May 2020Jul 2020Sep 2020Nov 2020Jan 2021Mar 2021May 20210500100015002000
Median (total)Median (pre-lockdown I)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 5.8% between April and May 2021.
  • 7,996 additional companies were registered in May 2021 relative to May 2019.
  • The median daily registrations were 30% higher in May 2021 than May 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 2021020040060080010001200
7-day rolling average of company registrationsNumber of registrations

Relative

Company registrations persistently exceed their 2019 and 2020 levels. This effect is strong regardless the third national lockdown.

102030405000.511.522.5
2021/20192020/2019Ratio of company registrations​(Same week of reference in 2019)​WeeksRatio
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May

Daily average company registrations in May 2021 are 13.5% higher than May2020 and 41% higher than May 2019.

20192020202102004006008001000
Daily median company registrations in MayNumber of registrations
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Regional Analysis

Postcode Area

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

Country

The following graph aggregates business creation by country. London, followed by England, dominate business registrations. For the first time in 2021, Scotland presents increasing business incorporations.

5101520050100150200
England (excl. Ldn)Northern IrelandScotlandWalesLondonChange of company registrations in May by Country​(Same week of reference in 2019)​Weeks% change
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London

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

5101520050100150200250300350400
Central LondonEast LondonNorth LondonSouth East LondonSouth West LondonWest LondonChange of company registrations in May 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 May 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.

5101520−50050100150200250
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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  • May 2021 retains higher firm creation in most sectors than May 2019.
  • ‘Wholesale, and Retail Trade’, ‘Manufacturing’, ‘Agriculture, forestry and fishing’, ‘Financial and insurance activities’ and ‘Real estate activities’ sectors show the greatest increase in firm creation in May 2021.
  • Compared to May 2019, in May 2021 there is more than a 300% increase in business creation for ‘Combined office administrative service activities’, ‘Retail sale via mail order houses or via Internet’ and ‘Raising of other animals’.
  • There are lower registrations relative to May 2019 in ‘Warehousing and storage’, ‘Activities of head offices’, ‘Service activities incidental to land transportation’ and ‘Legal activities’.

Last updated on Aug 6, 2021