UK economic activity strengthened in February, with GDP rising 0.5% mom, well above expectations of 0.1% mom. The expansion was broad-based, with both services and production increasing by 0.5%, while construction posted a stronger 1.0% gain, pointing to a solid rebound in output.
On a three-month basis, growth also improved. GDP expanded by 0.5% in the three months to February, up from 0.3% in the three months to January. Services output rose by 0.5%, while production led with a 1.2% increase, suggesting underlying momentum in the industrial sector.
However, the picture remains uneven. Construction output fell by -2.0% over the three-month period, highlighting ongoing weakness in parts of the economy.
Overall, the stronger headline data provides some relief for growth concerns, but does not fully offset broader uncertainties tied to inflation pressures and external risks.
| Indicator | Latest | Notes |
|---|---|---|
| GDP | +0.5% | Much stronger than +0.1% expected |
| Services | +0.5% | Main driver of overall growth |
| Production | +0.5% | Broad-based industrial support |
| Construction | +1.0% | Rebound in February |
