UK economy slumped in February before Coronavirus impact

Credit;PA

The UK economy contracted in February as poor weather impacted the development sector, based on official statisticians.

The Office for National Statistics (ONS) said UK GDP fell by 0.1% during the month, as it slipped from 0.1% development in January.

Economists had predicted the economy would actually grow by 0.1% in February.

The ONS said the figures, which cover the time prior to the spread of coronavirus accelerated across the UK, reflected continued stagnation throughout the economy.

Declining activity within the construction industry particularly hampered growth, with the sector reporting a 1.7% decline in its GDP for February.

Meanwhile, the services sector was flat, manufacturing grew by 0.5% and the agriculture sector reported a 0.1% decline for that month.

GDP

The ONS also revealed that GDP grew by 0.1% within the three months to February, on the back of development in December and January.

It said growth for the quarter was driven with a positive period for the service sector, although the industry is expected to show a sharp decline in the next group of figures, following a Government-mandated shutdown of pubs, bars and restaurants.

Rob Kent-Smith, head of GDP in the ONS, said: “Today's figures reveal that within the three months to February, that was before the full effects of coronavirus became predominant, the economy continued to exhibit little to no growth.

“Most elements of the help sector grew, though manufacturing continued to say no.

“Construction saw a notable fall in February, as wet weather and flooding hampered housebuilding.”

Fran Boait, executive director of Positive Money, said: “There is a risk that as growth figures worsen, the Government is going to be pressured to unwind coronavirus prevention measures to get the economy going again, in the cost of lives.

“Doing so could be dangerous. The Government must put the health from the public ahead of the development of the economy.”