UK economy flatlined in February amid impact of strikes
Britain’s economy failed to grow in February, official figures have revealed, amid a wave of strikes across the public sector and weakness in industrial output.
The latest Office for National Statistics figures show the economy ground to a halt in February, falling below City expectations for a 0.1% rise in activity on the month.
The ONS said construction grew strongly after a poor January, with increased repair work taking place, alongside a boost from retail as many shops had a strong month for sales.
However, it said this had been offset by civil service and teachers’ strikes, hitting activity in the public sector, while unseasonably mild weather led to a fall in the use of electricity and gas. Manufacturing showed zero growth, while the UK’s dominant services sector fell by 0.1%, down from a revised growth rate of 0.7% a month earlier.
The comments came hours after Jeremy Hunt insisted the UK would do “significantly better” than the International Monetary Fund’s forecast on Tuesday that the economy was expected to shrink by 0.3% this year.
Speaking to Bloomberg News on the sidelines of the fund’s spring meetings in Washington on Wednesday night, he said: “We will do better than that. Our forecasts are significantly better.”
Responding to Thursday’s latest figures, the chancellor said: “The economic outlook is looking brighter than expected: GDP grew in the three months to February and we are set to avoid recession thanks to the steps we have taken.”
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Rachel Reeves, the shadow chancellor, said the figures showed the economy was inching along. “Despite our enormous promise
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