UK economic growth slowed by more than expected in February, as Britain’s industrial output dropped as manufacturers struggled to obtain parts.
Overall, the economy grew by just 0.1%, despite a strong resurgence of both inbound and outbound tourism activity – including travel agencies, hotels, and tour operators.
This follows 0.8% growth in January and is below the 0.3% February growth which economists expected.
Data from the Office for National Statistics (ONS) showed that monthly GDP is now 1.5% above its pre-pandemic level of February 2020.
But despite the rise in tourism, the economy was dragged down by a fall in production, which slipped by 0.6% and construction, which fell by 0.1%, the ONS said.
Services is now 2.1% above its pre-coronavirus level, while construction is 1.1% above and production is 1.9% below, the ONS added.
Lucinda O’Reilly, director at London-based The International trade Consultancy, said: “The economy and economic policy just don’t make any sense at the moment.
“The price of everything is going through the roof and just to rub salt into the wound we’ve now been hit by the increase in National Insurance.
“Some areas of the economy are doing well, while others are running on fumes. The whole economy needs rebalancing but I have no idea how to do it and I don’t think the Chancellor does either.”
Anna Hamill, founder at Belfast-based card and gift retailer And Hope Designs, added: “There’s a lot of talk about ghost towns due to the pandemic and the cost of living crisis, but things are eerily silent online, too.
“Revenues are down 67% year on year for me. Even in the run-up to Valentine’s Day and Mother’s Day things were very quiet, which is particularly worrying given that I sell many cards and gifts specifically related to occasions like these.
“It’s a brutal climate for all retailers, online and bricks and mortar. People either aren’t spending or don’t have the money to spend. Sentiment has been hit for six.”
