simple answer is YES.

“Flow“ –verb

1. to move along in a stream: The river flowed slowly to the sea.
2. to circulate: blood flowing through one’s veins.
3. to stream or well forth: Warmth flows from the sun.
4. to issue or proceed from a source: Orders flowed from the office.
6. to proceed continuously and smoothly: Melody flowed from the violin.
7. to come or go as in a stream: A constant stream of humanity flowed by.
8. to hang loosely at full length: Her hair flowed over her shoulders.
9. to abound in something: The tavern flowed with wine.
10. to rise and advance, as the tide.

As you see the definition above the word flow is not restricted to liquid or water.

water company will say “NO its not possible for your meter to record usage without flow” but they are using the word “flow” and not the word “water”.

Most  meters are very accurate and run perfectly fine for years.

However there are some issues that can arise with both types of meter be they digital or mechanical.

Digital  meters can be effected first of all by vibrations, so a washing machine on full spin that is close to the meter and touching the pipework can cause it to miss record, also if you have had a new kitchen fitted and the meter has been knocked around by the contractor this can cause it to jump. Secondly digital meters can go wrong if not earthed correctly. If you have a digital meter and there is no earth wire connected it can be miss recording.

Mechanical meters can be effected as above due to vibrations but also can record Air flow as well as water. For example there is a problem with the supply and your water has stopped running, you have left the tap on but nothing is coming out. now this is where simple physics come into play, you have to remember that you water meter is above the height of the mains supply which is probably buried under the road or footpath, so because you have left the tap open the water will syphon back down the pipework past your water meter and leave all the pipework full of air. When the water company fix what ever problem caused you to loose your water supply and start re pressurising the water system this will push air back threw your meter and cause the internal mechanism to spin wildly and record high usage. We all know air is thinner than water so less resistance means faster movement.