UK economy stagnates with zero growth

The UK economy flatlined in February with zero growth, according to the Office for National Statistics (ONS).

Figures released today revealed Gross Domestic Product (GDP) growth - which measures the value of all goods and services produced in the UK - was 0.0 per cent.

Falls in activity in the services sector dragged down GDP during the month, including education and defence, offsetting growth in the construction sector.

Analysts had expected GDP to grow by 0.1 per cent in February.

However, the UK is still predicted to narrowly avoid a recession.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said: “This morning 's GDP figures reflect a disappointing period of stagnation, following a prolonged period of almost no economic growth.

“While the country continues to avoid a recession, experts warn that the UK economy will shrink by 0.3 per cent this year, making it one of the worst performing economies among the G20, and the worst among the G7.

“It is clear that the Chancellor 's budget last month has not gone far enough to adequately support businesses and address major concerns around energy prices and labour market challenges that continue to hamper growth.

“Nevertheless, our surveying suggests that local businesses remain resilient in the face of these ongoing economic challenges, with 63 per cent expecting turnover to increase over the course of the year, and many increasing investments in both capex and training.

“The Chamber will continue to work collaboratively with local and national stakeholders to support businesses across Greater Birmingham in these challenging times.

“I encourage those interested in understanding how businesses are faring and opportunities to support firms across the region to attend the upcoming launch of the Chamber 's latest Quarterly Business Report. ”

Register your place at the launch of the Quarterly Business Report for Q1 2023, on 20 April.