UK economy grew by 0.5 per cent in February surpassing predictions
11 April 2025, 07:08 | Updated: 11 April 2025, 08:23
The UK economy grew by 0.5% in February, according to the Office for National Statistics.
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The UK economy was predicted to grow by 0.1%, with the figures far higher than predicted.
The figures follows a 0.1% contraction in January - with the growth representing a welcome relief to the government.
Liz McKeown, director of economic statistics at the ONS, said: "Within services, computer programming, telecoms and car dealerships all had strong months, while manufacturing electronics and pharmaceuticals led the way and car manufacturing also picked up after its recent poor performance.
"Across the last three months as a whole, the economy also grew strongly with broad-based growth across services and industries."
The figures show that while services grew 0.3%, production grew 1.5% and construction 0.4%.
It also marks a significant monthly improvement after no growth in January, the ONS added.
The figures come as a surprise boost for Labour and Chancellor Rachel Reeves, after the party made growing the economy its key priority since winning the election last year, but momentum has been slow amid falling consumer confidence and rising inflation.
However, Ms Reeves said on Friday that recent trade tariffs by US President Donald Trump had upended prospects for the global economy in recent weeks.
She said: “These growth figures are an encouraging sign, but we are not complacent.“The world has changed and we have witnessed that change in recent weeks.“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.
“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.”
The US has hit the UK with a blanket 10% tariff on practically all goods entering the world’s biggest economy, which is expected to hurt British exporters and dampen growth.
And recent tax rises for companies, alongside surging water, energy bills, council taxes and other consumer bills which took effect in April, could hamper the economy further.
It comes as the Conservatives claimed the Government still had a "long way to go" on growing the economy.
Mel Stride, the shadow chancellor, said: "Since coming to office, Labour's choices have killed growth stone dead and there is still a long way to go to recover.
"At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour's decisions.
"Hardworking families deserve better than a Government crowing about sluggish growth whilst they will be £3,500 worse off because of the jobs tax."
