The UK economy flatlined in February, with no growth in GDP, according to official figures.
Civil sector strikes and low energy consumption offset growth in areas such as construction – which grew 2.4%, the Office for National Statistics (ONS) data showed.
Services production fell by 0.1% in the month, following growth of 0.7% in January 2023.
The largest contributor to negative growth in the services industry was education, which fell 1.7% in a month where teacher strikes took place.
Another strikes hit sector, public administration, was the second largest contributor to negative growth in the services industry.
Construction grew thanks to repair works taking place and retail output increased as many shops had a “buoyant month”, the ONS’s director of economic statistics said.
It followed growth of 0.4% in January and confirmation that the UK economy avoided recession in the second half of 2022 and actually grew 0.1% in the final three months of the year.
The most recent projections from the independent economic forecaster, the Office for Budget Responsibility (OBR), said the UK will avoid recession – defined as two consecutive quarters of negative growth – in 2023, despite previous predictions.
But the economy will still shrink overall this year by an expected 0.2%, and the fiscal watchdog warned living standards are to fall by the largest amount since records began.
Responding to the announcement Chancellor Jeremy Hunt 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.”
On a quarterly basis the economy grew slightly. In the three months to February the ONS said GDP, a measure of economic growth, increased by 0.1%.
Labour’s shadow chancellor Rachel Reeves said: “Despite our enormous promise and potential as a country, Britain is still lagging behind on the global stage with growth on the floor.
“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.”