UK growth faster than expected in February

February GDP figures from the Office of National Statistics (ONS) have shown that the UK economy grew 0.5%, significantly faster growth than had been predicted.

Growth was driven by increased output of both services (0.3% growth) and production (1.5% growth), with construction output the same as in January. Among subsectors of the economy performing best in February were IT and telecoms, electronics, pharmaceuticals and car manufacturing. January’s GDP figures, which recorded a 0.1% contraction in the economy have also been revised upwards by the ONS to 0% growth.

Overall in the three months to February 2025, the UK economy is estimated to have grown by 1.4% compared to the same period 12 months ago, growing 0.6% over the last quarter alone.

The 0.5% growth seen in February has outpaced growth expected by a poll of City economists who had forecast a 0.1% rise in output.

Growth figures announced by ONS, however, do not take into account the impact of domestic and international changes to trading conditions. April has seen the imposition of 10% tariffs on UK exports to the US by President Trump, while in the UK, an increase on employer National Insurance Contributions and the National Living Wage have also come into force, which will not be fully revealed until April’s GDP data is published later this year.