According to recent news, the UK economy was flat in February, as strikes and rising inflation weighed on economic activity. The Office for National Statistics (ONS) reported that Gross Domestic Product (GDP) remained unchanged in February, following a 0.2% contraction in January.
One of the main reasons for the stagnation was the impact of strikes in the education sector, which disrupted economic activity in February. The ONS reported that education output fell by 14.9%, which was the largest monthly fall since records began in 1997. This contributed to a 1.2% drop in the output of the services sector, which accounts for around 80% of the UK economy.
In addition to the strikes, rising inflation also weighed on economic activity in February. The ONS reported that consumer prices rose by 0.7% in February, which was the highest rate since 2018. This led to a decline in consumer spending, which is a key driver of economic growth.
Overall, the flat GDP figure for February highlights the ongoing challenges facing the UK economy as it emerges from the COVID-19 pandemic. With the impact of strikes and inflation likely to continue in the short term, it remains to be seen whether the economy will pick up momentum in the coming months.