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The UK economy barely expanded in February due to weak health sector activity, supply chain disruptions and storms, raising concerns about its resilience as the cost of living soared.
Gross domestic product expanded 0.1 percent in the January-February period, down from 0.8 percent in the previous month, according to data from the National Bureau of Statistics on Monday. That was below the 0.3 percent forecast by economists polled by Reuters.
Darren Morgan, head of economic statistics at the ONS, said: “The economy was little changed in February as the easing of overseas travel restrictions – and increased confidence in booking holidays in the UK – sparked a strong surge in travel agents, tour operators and hotels. growth.”
However, this was partly offset by a reduction in test and trace and vaccination programmes, which contributed significantly to GDP at the beginning of the year, he added.
Manufacturing production fell 0.4% as automakers struggled to source parts. Construction output also fell 0.1% as the storm disrupted activity.
Services output growth slowed to 0.2% from 0.8% in the previous month. The largest positive contribution to growth came from accommodation and food service activities, which increased by 8.6%. However, this was offset by human health and social work activities, which fell 3.8%, reflecting a reduction in vaccination programmes.
The economy is now 1.5% above its pre-pandemic level.
The figures largely predate Russia’s invasion of Ukraine, which has pushed up energy and commodity prices as well as costs for British businesses and consumers.
Samuel Tombs, an economist at Pantheon Macroeconomics, expects GDP to contract in the second quarter “as the recovery in consumer spending fades and health sector output continues to fall”.
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