The UK economy shrank by 2.6% in November as fresh lockdown restrictions in England reduced economic activity, official figures show.

The Office for National Statistics said UK gross domestic product at the end of November was 8.5% below its pre-pandemic peak.

November’s decline came after sixth consecutive months of growth, with a 0.6% improvement in October.

The services sector was the main drag on growth in November.

The closure of businesses such as pubs, hairdressers and many shops meant the sector contracted by 3.4%. The services sector is now 9.9% below the level of February 2020, the ONS said.

ONS director for economic statistics Darren Morgan said: “The economy took a hit from restrictions put in place to contain the pandemic during November, with pubs and hairdressers seeing the biggest impact.

“However, many businesses adjusted to the new working conditions during the pandemic, such as widespread use of click and collect as well as the move online.

He added: “Manufacturing and construction generally continued to operate, while schools also stayed open, meaning the impact on the economy was significantly smaller in November than during the first lockdown.

“Car manufacturing, bolstered by demand from abroad, housebuilding and infrastructure grew and are now all above their pre-pandemic levels.”