The UK economy saw no growth in February, following a 0.4% increase in January, according to the latest figures from the Office for National Statistics (ONS).
While construction output rose by 2.4% in February due to an increase in repair work, this was largely offset by the impact of industrial action in the public sector.
The data also shows that economic activity in the services sector slowed in February, falling by 0.1% after growing by 0.7% the month before.
However, consumer-facing services grew by 0.4%, with the ONS director of economic statistics, Darren Morgan, highlighting that retail businesses had a "buoyant month".
Looking at the bigger picture, GDP grew by 0.1% in the three months to February. Chancellor Jeremy Hunt said this shows that the economic outlook is "brighter than expected", despite slow progress.
Recent revisions to ONS data also estimate that GDP is 0.3% higher than pre-pandemic levels.
Speaking on the ONS figures, Hunt said:
"GDP grew in three months to February, and we are set to avoid recession thanks to the steps we have taken through a massive package of cost of living support for families and radical reforms to boost the jobs market and business investment."
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