According to official data released on Friday, the U.K. economy, in February, experienced a stronger-than-anticipated growth of 0.5% compared to the previous month, driven by a significant increase in services output. Initial projections by analysts had expected a modest 0.1% rise in the monthly GDP, based on LSEG data.
The Office for National Statistics (ONS) reported that the unexpected economic expansion was primarily fueled by a 0.3% growth in the services sector, which had previously shown a slight 0.1% increase on a monthly basis in January.
Additionally, production output rebounded with a 1.5% rise month-on-month, reversing from January’s 0.5% contraction. Construction output also improved, growing by 0.4% in February after a 0.3% decline in the prior month.
Following the release of this data, the British pound strengthened against the dollar, climbing 0.2% to $1.2988 by 7:18 AM in London.
The U.K. economy has faced challenges in building momentum over the past year, with only a 0.1% GDP expansion in the last quarter of 2024. Meanwhile, the latest figures were released as the country prepared for new economic pressures linked to impending 10% tariffs on its exports to the United States.
