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UK faces pre-Christmas slump on back of new Covid restrictions

Surveys of business activity show a sharp decline as both confidence and output fall

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Britain’s economy is set for a pre-Christmas slump with further job losses and shop closures, despite government measures to protect businesses during the latest Covid-19 restrictions.

Surveys of business activity reveal a sharp decline as tough new restrictions were launched across the UK amid the second coronavirus wave, setting the stage for a difficult winter ahead as the economy plunges into reverse.

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