UK economy grew by 0.5% in February in boost to Rachel Reeves
The UK economy grew by 0.5 per cent in February in a boost to Labour following several months of almost flatlining, with the Office for National Statistics (ONS) pointing to “widespread growth” across multiple sectors.In January, an unexpected 0.1 per cent decline was initially reported before the ONS revised its estimates to a flat month, following just 0.1 per cent growth in the final quarter of 2024 – so February’s change of gears will be welcome news to Rachel Reeves.Commenting on Friday’s GDP figures for February, ONS director of economic statistics Liz McKeown said: “The economy grew strongly in February with widespread growth across both services and manufacturing industries.“Within services, computer programming, telecoms and car dealerships all had strong months, while in manufacturing, electronics and pharmaceuticals led the way and car manufacturing also picked up after its recent poor performance.“Across the last three months as a whole, the economy also grew strongly with broad-based growth across services industries.”Speaking about the data, chancellor Rachel Reeves acknowledged that the positivity would be tinged with more immediate concerns over tariffs and potential trade wars following a wild week in the stock markets.“These growth figures are an encouraging sign, but we are not complacent. We must keep going further and faster on our Plan for Change,” Ms Reeves said.“The world has changed, and we have witnessed that change in recent weeks. I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them. This government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest. At the same time, we will be relentless in our work to kickstart economic growth, provide security for working people and renewal for Britain.”Rachel Reeves acknowledged the positivity would be tinged with more immediate concerns over Donald Trump’s tariffs More