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UK economy grew 0.5% in February, beating economists' expectations by a long shot
Services and production drove the rebound, while economists had expected only 0.1% growth, the Office for National Statistics said.
- On Thursday, the ONS reported the British economy grew by 0.5% in February, surpassing analyst expectations of 0.3% expansion. The rebound followed flat growth in January.
- Broad-Based increases across Services and production, both growing 0.5%, drove the expansion, while construction rose 1%. Grant Fitzner, the ONS chief economist, noted car production recovered from autumn cyber incident effects.
- Analysts characterized the February data as backward-looking given the Middle East conflict that began with military operations against Iran on Feb 28. The International Monetary Fund warned the UK could face the largest growth hit of any major economy.
- Economists expect inflation to accelerate to 3.3% in March from 3% in February, prompting potential interest rate hikes. The Bank maintains rates at 3.75% while Rachel Reeves, the chancellor, warned war costs will burden British families and businesses.
- The International Monetary Fund now forecasts UK growth of just 0.8% this year. Patrick O'Donnell, chief investment strategist at Omnis Investments, noted the February GDP data will likely have minimal impact on The Bank policymakers' thinking at their next meeting.
36 Articles
36 Articles
The Northern Echo
UK economic growth in February better than forecast before Iran war
The ONS said gross domestic product grew by 0.5 month-on-month in February following upwardly revised growth of 0.1 in January.
The strongest monthly growth was last recorded in June 2023, when it reached 0.6%.
UK economy beats predictions with faster-than-expected growth in February
The UK economy grew faster than expected in February, seeing its biggest monthly rise in more than two years. According to the Office for National Statistics, the economy grew by 0.5% in February, beating forecasts of 0.1% from most economists. Growth figures have also been revised up to 0.1% for January, with the ONS having previously said there had been no growth to start the year. These numbers cover the period right up to the start of Donald…
Gross domestic product (GDP) rose by 0.5 percent compared to the previous month. But experts warn: the conflict in the Middle East is significantly clouding the prospects.
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