By Xavier Fontdegloria
The UK economy nearly flattened out in February and economists see tougher times ahead as the fallout from the Ukraine war pushes inflation to a multi-decade high.
The UK economy grew 0.1% mom in February, the Office for National Statistics said on Monday, slightly less than the 0.2% increase expected by economists in a survey conducted by the Wall Street Journal.
The service sector, particularly consumer-facing services, was the largest contributor to economic growth during the month, according to the ONS. However, this was partially offset by a decline in industrial and construction activity.
In January, the UK economy grew 0.8%, led by a rebound in consumer services following the lifting of Covid-19 restrictions.
Economic growth in the UK is expected to slow in the coming months as the cost of living crisis leads to a fall in households’ disposable income and hits consumer spending, economists say. The war in Ukraine and the associated energy price shock are also likely to weigh on economic growth.
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