UK economy grows 0.3% in January, beating forecasts

The pound rose against the U.S. dollar and euro on the back of the figures, which showed growth was powered by the services sector. "Across the last three months as a whole and, indeed over the last 12 months, the economy has, though, showed zero growth."

British economic output rose by a better-than-expected 0.3% month-on-month in January, according to data on Friday that will likely bolster investors' bets that the Bank of England will raise interest rates again this month.

A Reuters poll of economists had pointed to growth of 0.1%. The pound rose against the U.S. dollar and euro on the back of the figures, which showed growth was powered by the services sector. The manufacturing and construction sectors contracted.

"The economy partially bounced back from the large fall seen in December," Office for National Statistics Director of Economic Statistics Darren Morgan said. "Across the last three months as a whole and, indeed over the last 12 months, the economy has, though, showed zero growth."