Lockdown costing U.K. $2.9 billion each day

Each day of the lockdown is costing the U.K. economy £2.4 billion ($2.9 billion), a reduction in economic output of 31%, research shows.

Modeling by the Centre for Economics and Business Research showed the arts, entertainment and recreation, and manufacturing sectors are suffering the most as the U.K. remains on lockdown in an effort to halt the spread of the coronavirus.

The manufacturing sector is estimated to be down the most in monetary terms, costing the economy more than £500 million every day, equivalent to 69%.

Production in the arts, entertainment and recreation is down an estimated 81%, equivalent to about £105 million per day.

However, some sectors are likely to contribute more to the economy than usual over the lockdown period — which is set to run in the U.K. at least until April 12. The CEBR said economic output for the food and drink retail sector is expected to rise 22%, adding £26 million per day to the U.K. economy.

"This is due to both stockpiling and the temporary closure of restaurants and cafes causing more household consumption," the CEBR wrote in commentary accompanying the data.

CEBR economists assessed the economic impact of the lockdown on 105 major industries within the U.K. economy. It considered the ability of these sectors' abilities to produce goods or services.

"Many of the government measures do little to help capital intensive sectors like manufacturing, which benefits relatively less from furloughing employees and is essentially excluded from rate relief," said Douglas McWilliams, CEBR founder and deputy chairman, in the commentary. "It is likely therefore that (U.K.) Chancellor Rishi Sunak will need to look again at how to help this sector to prevent fundamentally viable firms from going under."