The United Kingdom's economy displayed no growth in February, with the services sector experiencing a decline and gross domestic product (GDP) falling. Economists had anticipated GDP to rise by 0.1%, but it only increased by a meager 0.02% in February.
Labour MP Rachel Reeves argued that these figures demonstrate Britain's continued struggle on the global stage, saying, "growth is on the floor." Despite this, Chancellor Jeremy Hunt remained optimistic about the economic outlook, claiming it to be brighter than initially expected.
Labour Shadow Chancellor Rachel Reeves highlighted the consequences of slow growth: "families worse off, high streets in decline and a weaker economy."
Meanwhile, the International Monetary Fund (IMF) upgraded its forecast for the UK economy for both this year and next year; however, they still predict slower growth compared to other G7 countries. Policing Minister Chris Philp was quick to point out that "the UK has a 'track record' of consistently outperforming IMF forecasts" while noting that IMF predictions are often overly pessimistic.
According to official data released by The Office for National Statistics (ONS), weak industrial output and widespread strikes across public sectors contributed significantly to stagnation within the UK economy during February. Construction exhibited strong improvement after an underwhelming January performance; however, civil service and teachers' strikes nullified any potential progress.
Manufacturing demonstrated zero growth while there was a 0.1% decrease in output from dominant services sectors—a significant drop from January’s revised rate of 0.7%.
Jeremy Hunt remains confident that Britain will surpass Tuesday’s IMF prediction projecting a contraction of 0.3% within its national economy this year: “significantly better” than expected outcomes were indicated moving forward.
Rachel Reeves expressed concern over current trends despite some officials’ optimism: “the shadow chancellor said the figures showed the economy is inching along.”