Minimal growth in February

Gross domestic product (GDP), which measures the value of the total output of the UK economy, grew by an anaemic 0.1% in February 2022, down from 0.8% in January. The figures from the ONS show that the key positive factor was a 0.2% increase in service output, mainly driven by tourism-related industries, while a 0.6% fall in production and a 0.1% drop in construction, had a negative impact.

Monthly GDP is now 1.5% above its pre-pandemic level (February 2020) but the main contributor to the recovery over the period February 2020 to February 2022 has been human health and social work activities, in other words the work of the NHS and the care sector. Manufacturing output in February 2022 was still lower than in February 2020.

Commenting on the figures, Danni Hewson, a financial analyst at the investment platform AJ Bell, said: “It was the month the UK was supposed to start ‘living with Covid but if February is an indication of what that life will look like, the UK economy is in trouble.”

Frances O’Grady, TUC general secretary, blamed the cost of living crisis for “putting the brakes on our recovery as households cut back their spending”. She called for an emergency budget “to keep families out of hardship and to keep the economy moving”.

https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/latest

https://www.ajbell.co.uk/news/uk-economic-growth-disappoints

https://www.tuc.org.uk/news/gdp-cost-living-crisis-putting-brakes-economic-recovery-says-tuc