The UK economic system barely expanded in February resulting from weaker exercise within the well being sector, provide chain disruptions and storms, elevating issues over its resilience as the price of dwelling surges.
Gross home output grew 0.1 per cent between January and February, down from 0.8 per cent within the earlier month, in keeping with information printed on Monday by the Workplace for Nationwide Statistics. That was weaker than the 0.3 per cent forecast by economists polled by Reuters.
Darren Morgan, ONS director of financial statistics, stated: “The economic system was little modified in February with the easing of restrictions for abroad journey — and elevated confidence in reserving holidays within the UK — triggering robust development in journey companies, tour operators and accommodations.”
Nevertheless, he added that this was partially offset by the discount of the Take a look at and Hint and vaccination programme, which made a robust contribution to GDP firstly of the yr.
Manufacturing manufacturing fell 0.4 per cent, with motor producers struggling to supply components. Building output additionally fell 0.1 per cent, as storms disrupted exercise.
Output development within the providers sector slowed to 0.2 per cent from 0.8 per cent within the earlier month. The biggest constructive contribution to development was from lodging and meals service actions, which rose by 8.6 per cent. Nevertheless, this was offset by human well being and social work actions, which fell 3.8 per cent, reflecting the discount in vaccination programmes.
The economic system is now 1.5 per cent larger than its pre-pandemic degree.
The figures largely predate Russia’s invasion of Ukraine, which pushed up power and commodities costs in addition to prices for UK companies and shoppers.
Samuel Tombs, economist at Pantheon Macroeconomics, expects GDP to contract within the second quarter, “because the restoration in shoppers’ spending peters out and as output within the well being sector continues to fall again to earth”.