The UK economy experienced no growth in February due to the strikes of public sector workers.
According to the Office for National Statistics (ONS), a rise in construction activity was offset by walkouts of teachers and civil servants.
It comes after a surprise 0.4% increase in economic growth in January.
Despite February's disappointing performance, the chancellor stated that the economic outlook was "brighter" than expected and that the UK was "set for avoidance of recession".
Jeremy Hunt pointed out that GDP, which is a measure of economic growth, had increased by 0.1% in three months to February.
Labour however stated that the UK was "lagging behind" on the global stage, despite its growth.
Shadow chancellor Rachel Reeves stated that "the reality of growth slowing down is families getting worse off, declining high streets and a weaker economy which leaves us vulnerable."
Darren Morgan, ONS director for economic statistics, stated that the UK construction sector had experienced a strong growth in February following a difficult January. There was more repair work.
Retailing also saw a boost, with many shops reporting a "good month".
According to the ONS, the largest drag on growth was the nationwide walkouts of teachers on February 1 and in some parts of England on February 28.
According to Morgan, the overall picture is that the economy has been "pretty flat" since last spring.
Rising energy prices and increasing interest rates to manage inflation are having an impact. Industrial action in many sectors is also having an effect.
The International Monetary Fund warned that the UK will be one of the worst-performing major economies this year and shrinking by 0.3% by 2023.
Inflation in the UK was 10.4% in February, the highest rate for almost 40 years.
Many economists believe that inflation, the rate at which prices rise, will ease as energy and food prices drop. Recent forecasts also suggest that the economic outlook is not as dire as it was a few months back.