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UK economy slows more than expected as car production slumps | Economic growth (GDP)

Mount Equity Group Tokyo Japan > News > Markets > UK economy slows more than expected as car production slumps | Economic growth (GDP)

UK economic growth slowed by more than expected in February as a slump in car manufacturing undermined a sharp recovery in holiday bookings after the easing of Covid travel restrictions.

The Office for National Statistics said gross domestic product rose by only 0.1% in February, down from a monthly growth rate of 0.8% in January when the economy was recovering from the coronavirus Omicron variant.

City economists had forecast a monthly growth rate of 0.3%. Overall, the economy was 1.5% bigger than its pre-pandemic level in February.

Raising questions over the strength of the economy before Russia’s invasion of Ukraine in late February, manufacturing slumped as car producers continued to struggle with sourcing parts amid global supply chain disruption and shortages of vital components.

Activity in the sector fell 0.4% on the month, driven by a 5.4% drop in the manufacture of transport equipment and a 4.3% fall in computer, electronic…

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