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- UK GDP unexpectedly fell in February
UK GDP unexpectedly fell in February
According to the report from Office for National Statistics, monthly gross domestic product (GDP) fell by 0.1% in February 2020. This contraction was caused by a large fall in the construction sector, despite a good performance from manufacturing for the second month in a row. Economists had expected a 0.1% increase.
GDP grew by 0.1% in the three months to February 2020, following no growth in the three months to January 2020. The services sector made the only positive contribution to gross domestic product (GDP) growth in the three months to February 2020, growing by 0.2%. Meanwhile, the production and construction sectors fell by 0.6% and 0.2%, respectively, in the same period. This is the 10th consecutive rolling three-month decline in the production sector.
Commenting on today's GDP figures for the three months to February, Rob Kent-Smith, Head of GDP, Office for National Statistics, said:
"Today's figures show that in the three months to February, which was before the full effects of Coronavirus took hold, the economy continued to show little to no growth. Most elements of the services sector grew, though manufacturing continued to decline. Construction saw a notable fall in February, as wet weather and flooding hampered housebuilding. The underlying trade balance moved into surplus in the latest 3-months, the first seen since comparable records began over 20 years ago. This surplus was caused by a large fall in goods imported from EU countries."
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