Report February 2022

We analyse Companies House “basic company data” up to the January 31st, 2022. We note more company registration relative to December 2021. The firm creation among active firms remains stronger than the same period in 2019.

Highlights

1. Business creation increased 21% between December 2021 and January 2022.
2. Business creation was 49% higher in January 2022 than in January 2020 and 3% higher in January 2022 than in January 2021.
3. The largest number of company registrations occurs in ‘Public administration and defence; compulsory social security’ and ‘Wholesale, and Retail Trade’.

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.

Relative

Company registrations persistently exceed their 2019 levels. Extensive business activity is observed during the first 2 weeks of January 2022. Week 3 onwards, companies registration ratio narrows the gap and reaches the 2021/2019 ratio.

January

Daily average company registrations in January 2021 are 49% higher than January 2020, but 80% higher than January 2019 among the active firms.

Regional Analysis

Postcode Area

The map shows the average percentage change in new registrations in January 2022 compared to January 2019.

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Country

The following graph aggregates business creation by country. London, followed by Northern Ireland, dominates business registrations. In week 1, Scotland follows London. This trend vanishes the coming weeks of 2022.

London

Within London, most of the business creation in January 2022 comes from Central, East and North of London.

Sectoral Analysis

SIC Sections

The graph illustrates company registrations in January 2022 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.

• January 2022 retains higher firm creation in most sectors than January 2019.
• ‘Public administration and defence; compulsory social security’ and ‘Wholesale, and Retail Trade’ sectors show the greatest increase in firm creation in January 2022, as last month.
• Compared to January 2019, in January 2022 there is more than a 300% increase in business creation for ‘Other retail sale not in stores, stalls or markets’, ‘Removal services’, ‘General cleaning of buildings’ and ‘Manufacture of sports goods’ sectors.
• There are lower registrations relative to January 2019 in ‘Packaging activities’, ‘Warehousing and storage’ and ‘Manufacture of perfumes and toilet preparations’ sectors.

• Snapshot