ONS Report: 0% Economic Growth

The Office for National Statistics (ONS) reported this week that in February of this year the UK economy experienced no growth due to a series of public sector strikes that counteracted an increase in consumer spending, despite the ongoing cost of living crisis.

The latest data from the ONS showed that the economy failed to meet City expectations of a 0.1% rise in gross domestic product (GDP) compared to the previous month. The economy had experienced growth of 0.4% in January, but the UK's recovery to pre-pandemic levels remains slower than any other G7 country. The ONS reported that while construction grew strongly and retail experienced a boost, strikes by civil servants and teachers, as well as unseasonably mild weather, had a negative impact on the public sector and energy usage respectively.

Manufacturing saw no growth and the services sector fell by 0.1% compared to a growth rate of 0.7% in the previous month. These figures were released after Jeremy Hunt expressed confidence that the UK's economy would perform better than the International Monetary Fund's forecast of a 0.3% contraction this year.

Source: ONS