Data published by the Office for National Statistics (ONS) showed that the GDP increased by 0.5% in February, recording the strongest growth since March 2024. Economists expected GDP growth of 0.1% after stagnation in January (revised from -0.1%). Meanwhile, over the three-month period (through February), the GDP increased by 0.6% compared with the three months to November 2024, mainly because of growth in the services sector.
On an annual basis, GDP grew by 1.4% in February after an increase of 1.2% in January (revised from +1%). Consensus estimates suggested an increase of 0.9%.
The ONS said that services output is estimated to have grown by 0.3% in February, after unrevised growth of 0.1% in January, and output increased in 9 of the 14 subsectors on the month. Overall, the services sector is estimated to have grown by 0.6% in the three months to February 2025, compared with the three months to November 2024. The largest positive contribution in the services sector in February came from the information and communication subsector where output rose by 2.2% on the month, following a fall of 0.4% in January. At the industry level in this subsector there were widespread rises with five of the six industries growing in February. Output in consumer-facing services increased by 0.7% in February, following a fall of 0.1% in January (revised down from a 0.1% rise in our previous publication). The largest contributions at the industry level came from a 3.0% growth in wholesale and retail trade and repair of motor vehicles and motorcycles.
Meanwhile, industrial production rose by 1.5%, offsetting the January drop (-0.5%, revised from -0.9%) and recording the strongest growth since June 2023. Economists expected production to remain unchanged. Manufacturing production increased by 2.2% after a 1% decline in January (revised from -1.1%). Consensus estimates suggested an increase of 0.2%.