Report September 2021

In a nutshell

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

Highlights

  1. Business creation decreased 1.18% between July 2021 and August 2021.
  2. Business creation was 12.1% lower in August 2021 than in August 2020.
  3. The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ and ‘Transportation and storage’. Closer to the end of August 2021, ‘Financial and insurance activities’ present 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.

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 by 1.18% between July and August 2021.
  • 19,104 additional companies were registered in August 2021 relative to August 2019.
  • 7,998 less company registrations are noticed in August 2021 relative to August 2020.
  • The median daily registrations were 45.4% higher in August 2021 than August 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 August 2021 relative to August 2020. However, the August 2021 slowdown is smaller than the July 2021 one.

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

Daily average company registrations in August 2021 are 13.16% lower than August 2020, but 45% higher than August 2019.

20192020202105001000150020002500
Daily median company registrations in AugustNumber of registrations
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Regional Analysis

Postcode Area

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

Country

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

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

Within London, most of the business creation in August 2021 comes from Central, West and South East London.

510152025300100200300400500
Central LondonEast LondonNorth LondonSouth East LondonSouth West LondonWest LondonChange of company registrations in Aug 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 August 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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  • August 2021 retains higher firm creation in most sectors than August 2019.
  • `Transportation and storage’ and ‘Wholesale, and Retail Trade’ sectors show the greatest increase in firm creation in August 2021.
  • Towards the end of August 2021, ‘Financial and insurance activities’ sector presents an increase.
  • Compared to August 2019, in August 2021 there is more than a 300% increase in business creation for ‘Repair of communication equipment’, ‘Water collection, treatment and supply’, ‘Camping grounds, recreational vehicle parks and trailer parks’ and ‘Event catering activities' sectors.
  • There are lower registrations relative to August 2019 in ‘Construction of railways and underground railways’, ‘Wholesale of other intermediate products’ and ‘Activities of head offices’.

Last updated on Oct 1, 2021