GDP figures show UK growth continues to stagnate
Growth in February was 0.0 per cent saiid the Office for National Statistics, This follows growth of 0.4% in January, revised up from growth of 0.3% in the previous publication
Serviced fell 0.1%, production fell 0.2%
while construction grew 2.4%
The ONS said that part of the reason for zero growth was strikes in the public sector
Responding to the latest GDP figures, Alpesh Paleja, CBI Lead Economist, said:
“February’s GDP data was disappointing, but not wholly surprising given continued headwinds to growth, particularly from high inflation.
“Even if the UK avoids a recession this year, the pressures on household incomes will continue to sap the economy of any real momentum in the near-term. Whilst lower energy bills and falling inflation should set the stage for an uplift in the second half of the year, risks to the outlook remain to the downside.”
James Smith from the Resolution Foundation said
GDP out this morning for Feb are slightly worse-than-expected with GDP flat on the month. ONS say strikes adversely affected the service sector. Output is now above its pre-pandemic level (by 0.3%) but big picture is economy continues to flatline.
Shadow Chancellor Rachel Reeves said
“The reality of that low growth is families worse off, Britain lagging behind globally and a weaker economy.”
