Unexpected Growth: UK Economy Surpasses Projections in February

The UK's economy grew by 0.5% in February, surpassing forecasts of 0.1%. GDP was 1.4% higher than a year earlier, spurred by growth in services and manufacturing sectors. However, future projections are uncertain due to newly announced U.S. tariffs and changes in employment taxes and wages.

The United Kingdom's economy experienced a surprising expansion of 0.5% in February, as reported by the Office for National Statistics. This growth was significantly above the anticipated 0.1% forecast by economists surveyed in a Reuters poll.

February's gross domestic product was 1.4% higher compared to the same month last year. The services and manufacturing sectors contributed to this broad-based growth. The previous January estimate of a 0.1% decline has now been revised to show no change from December, indicating a steadier economic footing.

Last year's growth was a modest 1.1%, and future projections face uncertainty following President Donald Trump's recent tariff announcements. These tariffs could impact British exports and import costs significantly. Despite these challenges, there are positive signs of recovery as consumer spending shows resilience amid wage growth outpacing inflation.

(With inputs from agencies.)