UK Economy Grows 0.5% in February, Official Figures Show

Commuters walk as the sun rises behind Tower Bridge and the Canary Wharf financial district, in London, Britain, April 11, 2025. REUTERS/Isabel Infantes

Britain's economy grew at a monthly pace of 0.5% in February, figures from the Office for National Statistics showed on Friday, well above economists' expectations in a Reuters poll for an expansion of 0.1%.
Britain's economy grew by a lackluster 1.1% last year. Last month government budget forecasters halved their 2025 forecast to 1%, though they see stronger performance of 1.9% in 2026.
However, these forecasts have been thrown into doubt by President Donald Trump's announcement last week of sweeping tariffs on US imports. The tariffs raise the cost of most British exports to the United States by at least 10% and more than double the cost of imports from China.
Even before the tariff announcement, Britain and other European economies had slowed due to worries about US trade policy. British businesses also said they were reining in hiring and investment plans due to a big rise in employment taxes and the minimum wage that took effect this month.
However, there had been some signs that weak consumer spending had been starting to pick up as wage growth continued to outstrip inflation and retail sales beat economists' expectations in February.