Economy rebounds in unexpected boost to government

Britain's economy grew more than expected in February, official data showed Friday, in a rare piece of good news for a Labour government that has made kickstarting growth a top priority. Gross domestic product rose 0.5 per cent in the month, rebounding from an upwardly revised figure of zero per cent growth in January, the Office for National Statistics (ONS) said. The figures are an unexpected boost for the government – battling stubborn inflation and uncertainty over US tariffs – and comes after the country recently halved its 2025 growth forecast.
Analysts had estimated a 0.1 per cent increase in GDP in February, after previous unrevised data had shown that the economy slightly shrank in January.
"These growth figures are an encouraging sign, but we are not complacent," said chancellor Rachel Reeves.