UK gross domestic product (GDP) was flat in February, as falls in services and production were offset by growth in construction and retail.
Production and services slipped 0.2% and 0.1% respectively, while construction and retail were up 2.4% and 0.4%, the Office for National Statistics (ONS) data showed, leading GDP to come in at 0.0%, below an expected 0.1% rise.
UK economic growth sat at 0.1% for the three months to February, meanwhile, with the flat monthly figure following a rise of 0.4% in January.
GDP monthly estimate from the Office for National Statistics
Industrial action prompted the services sector fall, the ONS said, with strikes by teachers and civil servants hitting education, public administration, defence and compulsory social security.
Milder than usual weather also led gas and electricity to demand to fall, hitting production.
“Increased repair work” and “a boost from retailing,” helped the figure stay neutral, ONS director Darren Morgan explained.
“Although a recession has been avoided, for now at least, the UK economy remains in a troubling state,” BRI Wealth Management portfolio manager Tom Hopkins said.
“The UK’s poor performance over the last 12 months is attributed to the rapid hikes in interest rates needed to bring inflation under control, and the country’s heavy dependence on natural gas for heating and electricity.”
Pantheon Macroeconomics economist Samuel Tombs added GDP would likely stay flat in the second quarter, with a long-term fall in energy prices set to contribute to 0.1% growth for the year.