The UK economy showed zero growth between October and December 2022, according to early official figures.
Economic output fell by 0.5% in December, but for the fourth quarter as a whole output was flat at 0%.
Strikes by transport, health and postal workers and a lack of Premier League football because of the World Cup contributed to the drop in December, the Office for National Statistics (ONS) said.
A quarterly decrease would have met the technical definition of a recession, after the economy contracted by 0.2% in the previous three-month period, July to September.
Economic activity has stalled due to pressure on households and businesses from high energy costs, as well as rising prices for food and other goods.
Inflation is slowing but at 10.5% remains close to a 40-year high.
Across 2022 as a whole, the UK economy grew by 4% compared with a 7.6% increase in the previous year.
“Despite recent squeezes in household incomes, restaurants, bars and travel agents had a strong year,” said Darren Morgan, ONS director of economic statistics. “Meanwhile, health and education also began to recover from the effects of the pandemic.”
However, the economy is still 0.8% smaller than it was before Covid-19.