UK economic system flatlined in February amid affect of strikes | Financial development (GDP) – thqaftqlm

UK economic system flatlined in February amid affect of strikes | Financial development (GDP)

Britain’s economic system recorded development of 0.0% in February as a wave of public sector strikes weighed on exercise, offsetting a restoration in client spending regardless of the price of residing disaster.

The most recent figures from the Workplace for Nationwide Statistics present the economic system floor to a halt in February, falling beneath Metropolis expectations for a 0.1% rise in gross home product (GDP) on the month.

It follows development of 0.4% in January, as revisions to earlier estimates pushed the economic system again above pre-pandemic ranges.

The ONS stated development grew strongly after a poor begin to the 12 months with elevated restore work going down, alongside a lift from retail as many retailers had a robust month for gross sales.

Nonetheless, it stated this had been offset by civil service and lecturers’ strikes, hitting exercise within the public sector, whereas unseasonably delicate climate led to a fall in using electrical energy and fuel. Manufacturing confirmed zero development, whereas the UK’s dominant providers sector fell by 0.1%, down from a revised development price of 0.7% a month earlier.

The figures come hours after Jeremy Hunt insisted the UK would do “considerably higher” than the Worldwide Financial Fund’s forecast on Tuesday that the economic system was anticipated to shrink by 0.3% this 12 months.

Chatting with Bloomberg Information on the sidelines of the fund’s spring conferences in Washington on Wednesday night time, he stated: “We’ll do higher than that.”

Responding to Thursday’s ONS figures, the chancellor stated: “The financial outlook is trying brighter than anticipated: GDP grew within the three months to February and we’re set to keep away from recession because of the steps we’ve taken.”

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Rachel Reeves, the shadow chancellor, stated the figures confirmed the economic system was inching alongside. “Regardless of our monumental promise and potential as a rustic, Britain continues to be lagging behind on the worldwide stage with development on the ground.”

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