The UK economy grew at a faster pace than expected in February, rebounding from a lacklustre performance in January, figures on Friday showed.
According to the Office for National Statistics (ONS), gross domestic product rose 0.5% in February, with growth in all main sectors, following no growth at all in January.
The January result was revised up from a decline of 0.1% previously, while February’s figure beat FXStreet’s consensus, which forecast a 0.1% improvement.
The ONS said real GDP is estimated to have grown by 0.6% in the three months to February, compared with the three months to November, mainly because of growth in the services sector.
In February, services output grew by 0.3% in February, following unrevised growth of 0.1% in January and grew by 0.6% in the three months to February.
Production output grew by 1.5% in February, following a fall of 0.5% in January, revised up from a 0.9% fall, and grew by 0.7% in the three months to February, with manufacturing output driving the monthly and three-month growths.
Construction output grew by 0.4% in February, following a fall of 0.3% in January, revised down from a fall of 0.2%, but showed no growth in the three months to February.
Separate figures from the ONS showed the total goods and services trade deficit narrowed by £7.5 billion to a deficit of £1.0 billion in the three months to February, the lowest total trade deficit since the three months to July 2021.
The trade in goods deficit narrowed by £3.5 billion to £55.0 billion in the three months to February, while the trade in services surplus is estimated to have widened by around £4.0 billion to £53.9 billion.
Imports increased by £2.8 billion in February, reflecting a rise in both EU and non-EU imports. The value of goods exports remained stable in February, with minimal change to exports for both EU and non-EU countries.
Exports of goods to the US increased by £500 million in February, the third consecutive monthly rise, while imports of goods from the US increased by £200 million.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
