The UK economy is on track to head back into recession as official figures showed that it fell in November after the country was hit by stricter coronavirus restrictions.

The Office for National Statistics said UK gross domestic product (GDP) declined by 2.6 per cent month-on-month in November.

GDP at the end of the month was 8.5 per cent below its pre-pandemic peak but is expected to fall further after a third lockdown took hold this month.

November's decline came after six consecutive months of growth, with a 0.6 per cent improvement in October.

Stuart Klosinski, of Klosinski Economic Development Consultants, has suggested that there are positives though for the Furness region with investment still going ahead in infrastructure in the area.

"I am already seeing growth in some businesses that have come through the worst of it and they are using using their knowledge from the first lockdown and being innovative," he said.

"Investment is still going on with GSK, Kimberly-Clark, Shipbuilding, as well as prospects for wind."

Mr Klosinski is working with Cumbria LEP, engaging with businesses and said that it was not all bad news for industry in the area, but admitted areas such as South Lakeland and Eden – both heavily reliant on tourism – had been badly hit by coronavirus.

Economists warned that the UK is set to see a double-dip recession if restrictions remain in place in the first three months of 2021.

The services sector shrank by 3.4 per cent in November as rafts of hospitality and leisure firms were forced to shut due to England's second lockdown and strict restrictions across the other home nations.

The sector is now 9.9 per cent smaller than it was in February 2020, before the impact of the pandemic was first fully felt.

Darren Morgan, director for economic statistics at the ONS, 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.

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