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.
- Business creation decreased 5.8% between April 2021 and May 2021.
- Business creation was 13.5% higher in May 2021 than in May 2020.
- The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ and ‘Manufacturing’ sectors.
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.Download histogram data as:
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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.
Company registrations persistently exceed their 2019 and 2020 levels. This effect is strong regardless the third national lockdown.Download data as:
Daily average company registrations in May 2021 are 13.5% higher than May2020 and 41% higher than May 2019.Download data as:
The map shows the percentage change in new registrations in May 2021 compared to May 2019.
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.Download data as:
Within London, most of the business creation in May 2021 comes from Central, East and North London.Download data as:
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.Download data as:
- 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’.