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UK economy grows - ONS

The economy performed better than expected in February, growing by 0.5% according to official figures released on Friday. The standard measure of an economy's value, gross domestic product (GDP), rose in part thanks to a strong performance from the manufacturing sector, data from the Office for National Statistics (ONS) suggested.

It follows a worse month in January, when the economy was flat. And compared to the same month a year ago, GDP was 1.4% higher in February 2025. "The economy grew strongly in February with widespread growth across both services and manufacturing industries," said Liz McKeown, ONS Director of Economic Statistics.

Service sectors like computer programming, telecoms and car dealerships all had strong months, said Ms McKeown, while manufacturing industries such as electronics and pharmaceuticals also helped to drive GDP growth in February. Car manufacturing also picked up after its recent poor performance, she added.

"Across the last three months as a whole, the economy also grew strongly with broad-based growth across services industries."

While motor vehicle manufacturing and retail both grew in February 2025, they remain below February 2024 levels by 10.1% and 1.1% respectively

This aligns with industry data showing year-on-year declines in registrations and manufacturing. "The UK economy expanded by 0.5% in February, surprising but welcome positive news," said Hailey Low, Associate Economist at the National Institute of Economic and Social Research. "However, heightened global uncertainty and escalating trade tensions mean the outlook remains uncertain, with a likely reduced growth rate this year due to President Trump's "Liberation Day" announcements." Ms Low said that this would create a dilemma for Chancellor of the Exchequer Rachel Reeves, who would face difficult decisions later in the year when the next budget is due.

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