UK economy flatlines in Feb

Real gross domestic product (GDP) is estimated to have shown no growth in February 2023, where falls in services and production were offset by growth in construction, according to the latest figures from the Office for National Statistics (ONS).

The services sector fell by 0.1% in February 2023, after growing by 0.7% in January 2023, revised up from 0.5% in the previous publication.

The largest contributions to the fall in services output in February 2023 came from education and public administration and defence; compulsory social security, with industrial action taking place in both of these industries during the month.

Meanwhile output in consumer-facing services grew by 0.4% with the largest contributor to this growth coming from retail trade, except for motor vehicles and motorcycles.

This grew by 1.2% in February 2023, the largest growth since October 2022. Growth was also seen in other personal services (2.1%) and food and beverage services (0.4%), which both contributed to the overall growth in consumer-facing services.

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.”