The UK economy expanded more than expected in February, offering a temporary boost for Labour ahead of potential turbulence sparked by Donald Trump’s trade policies.
According to the Office for National Statistics (ONS), gross domestic product (GDP) rose by 0.5% in February—five times the 0.1% growth predicted by economists. The ONS also revised its estimate for January, now reporting zero growth instead of a 0.1% decline.
The stronger-than-expected numbers come as welcome news for Chancellor Rachel Reeves, who has prioritized economic growth. However, the figures do not account for the potential impact of Trump’s newly announced tariffs.
“These growth figures are encouraging, but we’re not complacent,” Reeves said. “The world has changed, and recent weeks have made that clear. We understand families are anxious about the cost of living, and businesses are uncertain about what lies ahead.”
In a move likely to hit British exporters, the US has imposed a sweeping 10% tariff on nearly all UK goods entering the American market. That blow, combined with a series of domestic cost increases—including higher corporate taxes, and rising energy, water, and council bills—may weigh on future growth.
Despite these looming threats, February showed robust economic activity. Liz McKeown, director of economic statistics at the ONS, noted significant gains across both services and manufacturing.
Manufacturing output jumped by 1.5%, rebounding from a 0.5% drop in January. Construction also recovered, growing 0.4% after a 0.3% fall, while the services sector—Britain’s largest—grew 0.3%, up from 0.1% the month prior.
While Labour hailed the figures, the Conservatives argued there’s more work to be done.
“Labour’s policies have stalled economic momentum,” said Shadow Chancellor Mel Stride. “There’s still a long way to go.”
Nicholas Hyett of Wealth Club called the growth figures “genuinely impressive,” but added they’re already overshadowed by Trump’s tariff bombshell. “Economic data often feels old by the time it’s published—February’s report now seems prehistoric given the shockwaves from the past week.”
Thomas Pugh, economist at RSM UK, agreed that the impact of the tariffs is likely unavoidable: “It seems impossible that they won’t dent business and consumer confidence.” Photo by GJMarshy, Wikimedia commons.