UK growth figures have exceeded expectations after the economy expanded strongly in February. Data from the Office for National Statistics showed a notable rise in output. Consequently, the figures point to a stronger start to 2026 than expected.
The UK economy grew by 0.5% in February compared with the previous month. This marked the fastest monthly growth in over a year. Moreover, January growth was revised up to 0.1%, improving earlier estimates.
Economists had predicted weaker performance. Most forecasts expected only a 0.1% increase for February. Therefore, the UK growth figures surprised analysts and policymakers.
The broader trend also showed steady improvement. Output rose by 0.5% over the three months to February. In addition, the previous three-month period recorded growth of 0.3%.
The services sector led the expansion during February. It increased by 0.5% over the month. Consequently, industries such as hospitality and market research performed well.
However, other sectors produced mixed results. Manufacturing output declined slightly during the same period. Meanwhile, construction activity rebounded with a 1% increase.
The UK growth figures also reflected recovery in key industries. Car production improved following earlier disruption. This followed a cyber incident that affected operations at major manufacturers.
Despite the positive data, concerns remain about future performance. Global tensions continue to affect energy markets. In particular, disruption linked to the Strait of Hormuz has increased costs.
The International Monetary Fund recently lowered its growth forecast for the UK. It now expects the economy to grow by 0.8% in 2026. This represents a significant downgrade from earlier predictions.
James Murray welcomed the latest figures. He said the government’s plan focuses on stability and investment. In addition, he highlighted efforts to improve competitiveness and reduce costs.
Meanwhile, Mel Stride offered a more cautious view. He said the economy remains vulnerable to energy shocks. Therefore, he questioned whether current policies can address future risks.
The UK growth figures highlight both resilience and uncertainty. Strong performance in February suggests economic strength. However, global pressures continue to influence the outlook.
UK growth figures show a better-than-expected start to the year. The economy has gained momentum in early 2026. Consequently, future growth will depend on stability in global markets and energy prices.
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