The economic system carried out higher than anticipated in February, rising by 0.5% based on official figures launched on Friday, however comes forward of an anticipated hit from the worldwide commerce warfare.
The usual measure of an economic system’s worth, gross home product (GDP), rose partially due to a suprisingly sturdy efficiency from the manufacturing sector, information from the Workplace for Nationwide Statistics (ONS) advised.
Analysts had been forecasting only a 0.1% GDP hike within the lead-up to the announcement, based on information from LSEG.
Chancellor of the Exchequer Rachel Reeves described the outcomes as “encouraging”, however struck a cautious tone when alluding to US President Donald Trump’s tariffs, and the financial volatility of the previous week.
“The world has changed, and we have witnessed that change in recent weeks,” she stated.
“I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them,” Ms Reeves added. “This government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest.”
However again in February, when Mr Trump was simply starting his second time period in workplace, the UK’s economic system appeared to be on firmer floor.
Service sectors like laptop programming, telecoms and automotive dealerships all had sturdy a month, whereas manufacturing industries comparable to electronics and prescription drugs additionally helped to drive GDP progress in February.
Automotive manufacturing additionally picked up after its current poor efficiency.
“The economy grew strongly in February with widespread growth across both services and manufacturing industries,” stated Liz McKeown, ONS Director of Financial Statistics.
Whereas motorcar manufacturing and retail each grew in February 2025, they continue to be beneath February 2024 ranges by 10.1% and 1.1% respectively
This aligns with business information exhibiting year-on-year declines in registrations and manufacturing.
“However, heightened global uncertainty and escalating trade tensions mean the outlook remains uncertain, with a likely reduced growth rate this year due to President Trump’s “Liberation Day” announcements.”
Ms Low stated that this might create a dilemma for Ms Reeves, who would face tough selections later within the 12 months when the chancellor presents her subsequent funds.
The most recent information additionally exhibits a leap from January, when the economic system was flat. And in comparison with the identical month a 12 months in the past, GDP was 1.4% greater in February 2025.
