The UK’s economy flatlined in February after showing growth in January, official figures have shown.
Widespread strike action in schools and the Civil Service dragged down gross domestic product (GDP) during the month, despite growth in the construction sector.
The outcome is lower than expected as analysts thought GDP would grow by 0.1 per cent in February, according to a consensus forecast supplied by Pantheon Macroeconomics.
However, the economy inched up by just 0.02 per cent in February.
This is a fall from the 0.4 per cent growth the economy saw in January. However, the bigger picture shows that GDP grew by 0.1 per cent in the three months to February.
It comes as the ONS said the UK’s consumer prices index (CPI) inflation rate surged to 10.4 per cent in the same month, unexpectedly jumping higher despite efforts from the Bank of England to pull it back to its two per cent target.
Despite no growth, chancellor Jeremy Hunt was optimistic as he said the UK is still on track to “avoid recession”.
He 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 through a massive package of cost-of-living support for families and radical reforms to boost the jobs market and business investment.”
Labour shadow chancellor Rachel Reeves said the figures show “Britain is still lagging behind on the global stage with growth on the floor”.
She added: “The reality of growth inching along is families worse off, high streets in decline and a weaker economy that leaves us vulnerable to shocks.
“These results are exactly why Labour’s mission to secure the highest sustained growth in the G7 is so important - it’s that level of ambition that we need to strengthen our economy, get our high streets thriving again and make families across every part of Britain better off.”
Commenting on the numbers, ONS director of economic statistics Darren Morgan said: “The economy saw no growth in February overall.
“Construction grew strongly after a poor January, with increased repair work taking place.
“There was also a boost from retailing, with many shops having a buoyant month.
“These were offset by the effects of Civil Service and teachers’ strike action, which impacted the public sector, and unseasonably mild weather led to falls in the use of electricity and gas.”
Additional reporting by Press Association.
