UK Economy's Resilient Growth Faces Trade Tariff Challenges

The UK's economy experienced its fastest growth in 11 months, increasing by 0.5% in February and surpassing expectations. However, looming U.S. tariffs threaten to destabilize future growth. Despite positive February data, economists warn of enduring trade war impacts. Manufacturing and construction surged, but trade uncertainty lingers.

The UK economy posted its fastest expansion in 11 months this February, with a 0.5% growth rate, according to the Office for National Statistics. This increase beat economists' expectations, providing a temporary boost as the country faces the potential setbacks of new U.S. tariffs.

While Finance Minister Rachel Reeves called the February data 'encouraging,' U.S. President Donald Trump's tariffs cast a long shadow over future prospects. Forecasters have revised Britain's economic growth downwards, predicting a more subdued trajectory due to these tariffs.

The trade environment remains precarious with Britain's goods exports to the U.S. ticking up by £0.5 billion as businesses rushed to circumvent impending tariffs. Analysts warn that while February's figures are positive, they may prove to be short-lived in the face of unpredictable trade relations.

(With inputs from agencies.)