UK economy flatlines in Feb as teachers’ strikes drag on growth - Indoors Beauty

UK economy flatlines in Feb as teachers’ strikes drag on growth

UK economy flatlines in Feb as teachers’ strikes drag on growth

The UK’s economy confirmed no growth in February as the nation continued to narrowly keep away from dipping right into a recession regardless of decades-high inflation.

Teachers’ and Civil Service strike motion acted as one of many largest drags on gross home product (GDP), with 1000’s of employees strolling out in the course of the month.

The decline in the providers sector offset growth in the development sector, which noticed a rebound significantly as a result of extra delicate climate and from new work and repairs.

Analysts had anticipated GDP to develop by 0.1% in February, month-on-month, in response to a consensus forecast provided by Pantheon Macroeconomics.

To two decimal locations, the economy eked up by simply 0.02% in February.

But wanting on the broader image, GDP grew by 0.1% in the three months to February.

It comes as the ONS stated the UK’s shopper costs index (CPI) inflation price surged to 10.4% in the identical month, unexpectedly leaping increased regardless of efforts from the Bank of England to drag it again to its 2% goal.

Chancellor Jeremy Hunt stated: “The financial outlook is wanting brighter than anticipated – GDP grew in the three months to February and we’re set to keep away from recession because of the steps we’ve got taken by an enormous package deal of cost-of-living assist for households and radical reforms to spice up the roles market and enterprise funding.”

The economy grew by 0.4% in January, revised from the 0.3% the ONS beforehand predicted, which means it noticed a slowdown the next month.

Nevertheless, the UK prevented falling right into a recession on the finish of final yr, with GDP edging up by 0.1% over the ultimate three months.

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

GDP would want to sink under 0.6% in March for the economy to have proven unfavorable growth in the newest quarter, the ONS stated.

ONS director of financial statistics Darren Morgan stated: “The economy noticed no growth in February general.

“Construction grew strongly after a poor January, with elevated restore work going down.

“There was additionally a lift from retailing, with many outlets having a buoyant month.

“These had been offset by the results of Civil Service and lecturers’ strike motion, which impacted the general public sector, and unseasonably delicate climate led to falls in using electrical energy and fuel.”

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