LONDON — Chancellor Jeremy Hunt insisted the U.K.’s economic outlook is “brighter than expected” despite official figures showing no growth in February.
The latest figures from the Office for National Statistics estimate that the U.K. economy saw no month-on-month growth in gross domestic product (GDP) in February. The opposition Labour Party’s Shadow Chancellor Rachel Reeves said in a statement that the U.K. was now “lagging behind on the global stage with growth on the floor.”
February’s flatline followed growth of 0.4 percent in January, and means the U.K. economy continues to avoid a recession, defined in the U.K. as two quarters of declining GDP in a row. In the three months to February, GDP grew by 0.1 percent.
Hunt, the U.K.’s top finance minister who was brought in to revamp the British economy after a market rout under his predecessor, 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.”
But his opposite number Reeves warned: “The reality of growth inching along is families worse off, high streets in decline and a weaker economy that leaves us vulnerable to shocks.”
The ONS figures also show that key public-sector strikes weighed on growth, amid strong performances in the construction and retail sectors.
ONS Director of Economic Statistics Darren Morgan said: “Construction grew strongly after a poor January, with increased repair work taking place. There was also a boost from retailing, with many shops having a buoyant month.
“These were offset by the effects of civil service and teachers’ strike action, which impacted the public sector, and unseasonably mild weather led to falls in the use of electricity and gas.”
