The UK economy experienced a slowdown in February, with GDP growth remaining flat, according to today’s ONS data.
January’s GDP growth was revised up to 0.4%, but this momentum failed to carry through to the following month.
A key factor contributing to the stall was a 0.1% contraction in the UK services sector, largely attributed to teachers’ strikes affecting the economy.
However, the construction industry experienced a significant boost, growing by 2.4% during February. In contrast, the production sector witnessed a decline, falling by 0.2%.
While the economy’s stagnation in February may raise concerns, experts believe that the revised GDP growth for January indicates the UK’s potential for economic recovery.
The contrasting performance of various sectors highlights the complexity of the current economic landscape and underscores the need for targeted policy measures to support growth across all areas.
Jonathan Moyes, head of investment research, Wealth Club, said: “The UK’s dominant services sector took a step back over the month as the teachers strikes took their toll on the economy. Flat GDP growth was lower than the 0.1% expected. Although it is pleasing to see January data revised higher.
“The release will do little to change the gloomy outlook for the economy. However, if one were looking for positives in the data, unseasonably warm weather and industrial action were the chief drivers of lower growth, rather than a downturn in general business and consumer spending. The consumer, the construction sector and part of the services sector such as financial services appear to be in good health.”
