0% Economic Growth in February

According to the Office for National Statistics (ONS), the UK economy did not grow in February of this year, which was attributed to a series of public sector strikes that offset an increase in consumer spending, despite the ongoing cost of living crisis.

City expectations for a 0.1% rise in gross domestic product (GDP) compared to the previous month were not met. Although the economy had experienced growth of 0.4% in January, it remains slower to recover to pre-pandemic levels than any other G7 country.

The ONS report published today cited strikes by civil servants and teachers, as well as unseasonably mild weather, as having a negative impact on the public sector and energy usage, respectively, while construction and retail experienced growth. Manufacturing saw no growth and the services sector fell by 0.1% compared to a growth rate of 0.7% in the previous month.

These figures were released after Jeremy Hunt expressed confidence that the UK's economy would perform better than the International Monetary Fund's forecast of a 0.3% contraction this year.

Source: ONS