STORY
In a surprising turn, the UK economy expanded by 0.5% in February 2025, significantly outpacing economists’ forecasts of a 0.1% increase, according to data released by the Office for National Statistics (ONS). This marks the strongest monthly growth since March 2024 and offers a boost to Chancellor Rachel Reeves amid global economic uncertainties.
The growth was broad-based, with all major sectors contributing positively. Production output led the way with a 1.5% increase, driven by notable gains in manufacturing sectors such as electronics, pharmaceuticals, and automotive production. Services output rose by 0.3%, while construction grew by 0.4%.
Chancellor Rachel Reeves welcomed the figures as “encouraging signs” of economic resilience but cautioned against complacency, noting the challenges posed by global trade tensions and domestic fiscal constraints. Despite the positive data, economists warn of potential headwinds, including the impact of recent U.S. tariffs on British exports and anticipated inflationary pressures. The Bank of England continues to monitor these developments closely as it considers future interest rate decisions .