UK Economy Grew Faster Than Expected In February, Figures Show
UK economy grew faster than expected in February, figures show
The UK economy expanded more strongly than expected in February, according to official data, offering a boost at the start of 2026.
Figures from the Office for National Statistics (ONS) showed that gross domestic product (GDP) grew by 0.5% in February, exceeding economists’ forecasts of around 0.1%. This marks the fastest monthly growth in over a year and signals a stronger-than anticipated start to the year for the British economy.
The growth was largely driven by the services sector, which rose by 0.5% and remains the dominant part of the UK economy. Other sectors also contributed:
- Construction increased by about 1%
- Manufacturing showed mixed performance but benefited from a rebound in car production
The recovery in car manufacturing followed disruption caused by a previous cyber incident, helping lift overall output.
Across the three months to February, the economy also grew by 0.5%, an improvement from the previous period. Economists had predicted much weaker growth, making February’s figures a positive surprise. The data suggests businesses such as wholesalers, hospitality firms, and publishers performed well during the period. Despite the stronger data, economists warn that the improvement may be short-lived. The figures come before the impact of rising global energy prices and geopolitical tensions, which are expected to weigh on growth in the coming months.
Forecasts for the UK economy have already been downgraded, with concerns that higher energy costs and inflation could slow activity later in 2026.
While February’s growth provides a positive signal, analysts caution that:
- Economic momentum could weaken
- Inflation pressures may persist
- Interest rate decisions remain uncertain
Overall, the data highlights short-term resilience in the UK economy, but with significant risks ahead.
