UK financial system flatlines with no development in February as strikes hit productiveness | Enterprise Information – thqaftqlm

UK financial system flatlines with no development in February as strikes hit productiveness | Enterprise Information

The shortage of development was surprising, 0.1% had been forecast.

By Sarah Taaffe-Maguire, Enterprise reporter @taaffems


The UK financial system flatlined in February, with no development in GDP, in response to official figures.

Civil sector strikes and low vitality consumption offset development in areas corresponding to building – which grew 2.4%, the Workplace for Nationwide Statistics (ONS) knowledge confirmed.

The flatlining was surprising. Economists polled by the Reuters information company had forecast slight development of 0.1% for the month.

ONS figures confirmed providers manufacturing fell by 0.1% within the month, following development of 0.7% in January 2023.

The most important contributor to unfavorable development within the providers business was training, which fell 1.7% in a month the place instructor strikes passed off.

One other strikes hit sector, public administration, was the second largest contributor to unfavorable development within the providers business.

Building grew due to restore works happening and retail output elevated as many outlets had a “buoyant month”, the ONS’s director of financial statistics stated.


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Unseasonably delicate and dry climate led to lowered manufacturing of electrical energy and gasoline, Darren Morgan stated. Output within the arts, leisure and recreation industries grew, nonetheless.

Larger financial development brings elevated tax revenues and sure greater incomes and requirements of dwelling.

It adopted development of 0.4% in January and affirmation that the UK financial system prevented recession within the second half of 2022 and really grew 0.1% within the closing three months of the yr.

The newest projections from the unbiased financial forecaster, the Workplace for Funds Accountability (OBR), stated the UK will keep away from recession – outlined as two consecutive quarters of unfavorable development – in 2023, regardless of earlier predictions.

However the financial system will nonetheless shrink general this yr by an anticipated 0.2%, and the fiscal watchdog warned dwelling requirements are to fall by the biggest quantity since data started.


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Responding to the announcement Chancellor Jeremy Hunt 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 due to the steps now we have taken by an enormous bundle of price of dwelling help for households and radical reforms to spice up the roles market and enterprise funding.”

On a quarterly foundation the financial system grew barely. Within the three months to February the ONS stated GDP, a measure of financial development, elevated by 0.1%.

Labour’s shadow chancellor Rachel Reeves stated: “Regardless of our monumental promise and potential as a rustic, Britain remains to be lagging behind on the worldwide stage with development on the ground.

“The truth of development inching alongside is households worse off, excessive streets in decline and a weaker financial system that leaves us susceptible to shocks.

“These outcomes are precisely why Labour’s mission to safe the best sustained development within the G7 is so vital – it is that stage of ambition that we have to strengthen our financial system, get our excessive streets thriving once more and make households throughout each a part of Britain higher off.”

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