UK economy grows 0.5% monthly in February, exceeding expectations

The UK's economy grew 0.5% month-on-month in February, surpassing market expectations, official data showed Thursday.

Markets had forecast 0.1% growth for February, following a 0.1% expansion in January, according to the Office for National Statistics (ONS).

Construction output rose 1% on a monthly basis in February, services output grew 0.5%, and production expanded 0.5%.

On a yearly basis, gross domestic product (GDP) grew 1% in February, exceeding expectations of 0.6% growth.

“Real gross domestic product (GDP) grew by 0.5%, following a growth of 0.3% in the three months to January 2026, and no growth in the three months to December 2025,” the office said.

In the three months to February, services output increased 0.5% and production output rose 1.2%, while construction output fell 2%.

Industrial production rises

British industrial production grew 0.5% monthly in February, following a 0.1% decline in January and exceeding forecasts.

“The rise in monthly production output in February 2026 was because of strength in 'mining and quarrying' (up 3.9%), 'electricity and gas' (up 1.5%), and partially from 'water supply and sewerage' (up 0.2%); these were minimally offset by 'manufacturing' (down 0.1%),” the office said.

The rise in mining and quarrying (up 3.9%) was led mainly by the extraction of crude petroleum and natural gas, which rose 5.1%.