UK economic system grinds to a halt in February amid strikes – thqaftqlm

UK economic system grinds to a halt in February amid strikes

UK economy Teachers attend a march during strike action in a dispute over pay, in London, Britain March 15, 2023. REUTERS/Peter Nicholls

Strike motion from academics hit the UK economic system in February. Photograph: Peter Nicholls/Reuters

The UK economic system flatlined in February, with no development in GDP, amid a wave of strikes throughout the general public sector.

The economic system was flat in the course of the second month of the 12 months, the Workplace for Nationwide Statistics stated, as placing academics, rail staff and civil servants introduced the British economic system to a grinding halt.

The ONS reviews that the companies sector output fell by 0.1%, whereas manufacturing fell 0.2% and development grew 2.4%.

This follows development of 0.4% in January, which has been revised up from development of 0.3% within the earlier publication.

The biggest contributor to detrimental development within the companies business was schooling, which fell 1.7% in a month the place trainer strikes passed off.

Learn extra: Rise in UK job candidates amid enhancing pay presents

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

Regardless of the flat efficiency in February, the chancellor stated the nation’s financial outlook was “brighter than anticipated”.

Jeremy Hunt stated: “The financial outlook is wanting 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 have now taken via an enormous bundle of cost-of-living assist for households and radical reforms to spice up the roles market and enterprise funding.”

A recession is mostly outlined within the UK as two quarters of declining GDP in a row.

GDP would want to sink beneath 0.6% in March for the economic system to have proven detrimental development within the newest quarter, the ONS stated.

Jonathan Moyes, head of funding analysis on the Wealth Membership, stated: “The UK’s dominant companies sector took a step again over the month because the academics strikes took their toll on the economic system. Flat GDP development was decrease than the 0.1pc anticipated. Though it’s pleasing to see January information revised increased. The discharge will do little to vary the gloomy outlook for the economic system.”

Learn extra: Home costs drop amid falling demand as rents maintain growing

The IMF this week forecast that the UK economic system would shrink 0.3% this 12 months, the worst efficiency of any G7 economic system.

Tom Stevenson, funding director for Private Investing at Constancy Worldwide, stated: ‘The most recent information, and the enhancing pattern elsewhere (equivalent to higher than forecast inflation numbers in America) affirm the Worldwide Financial Fund’s gloomy evaluation this week that put Britain on the backside of the league desk of main economies. Solely Germany can also be anticipated by the IMF to contract this 12 months.”

Watch: UK economic system flatlines with no development in February as strikes hit productiveness

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