Report August 2021

In a nutshell

We analyse Companies House “basic company data” up to the July 31st, 2021. We note a slowdown in company registration relative to July 2020. However, firm creation remains stronger than the same period in 2019.

Highlights

  1. Business creation decreased 3.9% between June 2021 and July 2021.
  2. Business creation was 25% lower in July 2021 than in July 2020.
  3. The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ and ‘Manufacturing’. Closer to the end of July 2021, ‘Arts, entertainment and recreation’ presents an increase.

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. Since July 19th, restrictions have been eased further in England.

Jan 2020Apr 2020Jul 2020Oct 2020Jan 2021Apr 2021Jul 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 3.9% between June and July 2021.
  • 13,687 additional companies were registered in July 2021 relative to July 2019.
  • 19,498 less company registrations are noticed in July 2021 relative to July 2020.
  • The median daily registrations were 47.3% higher in July 2021 than July 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.

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

Company registrations persistently exceed their 2019 levels. This effect is strong regardless the third national lockdown. However, we notice a slowdown, which continues from the previous month, in July 2021 relative to July 2020.

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

Daily average company registrations in July 2021 are 24.94% lower than July 2020, but 30.4% higher than July 2019.

20192020202105001000150020002500
Daily median company registrations in JulyNumber of registrations
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Regional Analysis

Postcode Area

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

Country

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

51015202530050100150200
England (excl. Ldn)Northern IrelandScotlandWalesLondonChange of company registrations in July by Country​(Same week of reference in 2019)​Weeks% change
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London

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

510152025300100200300400500
Central LondonEast LondonNorth LondonSouth East LondonSouth West LondonWest LondonChange of company registrations in July 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 July 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.

51015202530−50050100150200250300
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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  • July 2021 retains higher firm creation in most sectors than July 2019.
  • ‘Wholesale, and Retail Trade’ and ‘Manufacturing’ sectors keep showing the greatest increase in firm creation in July 2021.
  • Towards the end of July 2021, ‘Arts, entertainment and recreation’ presents an increase.
  • Compared to July 2019, in July 2021 there is more than a 300% increase in business creation for ‘Repair of communication equipment’, ‘Demolition’ and ‘Raising of other animals’ sectors.
  • There are lower registrations relative to June 2019 in ‘Warehousing and storage’, ‘Construction of railways and underground railways’, ‘Service activities incidental to land transportation’ and ' Veterinary activities'.

Last updated on Aug 6, 2021