UK Economy Grows 0.1% in February, in Line with Forecast

The UK economy grew in line with expectations in February, according to numbers on Friday.

According to the Office for National Statistics, UK gross domestic product rose by 0.1% in February from January, in line with FXStreet cited consensus. UK GDP had expanded 0.3% on-month in January, according to revised data.

The ONS said that in February, industrial production increased by 1.1% from January. It was expected to be unchanged, according to FXStreet cited consensus. Production declined by 0.3% in January from December.

On an annual basis, industrial production improved by 1.4% in February, having risen by 0.3% a month earlier.

READ MORE: UK Was in Recession at End of 2023, ONS Confirms

Data showed the UK trade deficit narrowed to £2.29 billion in February, from £3.13 billion in January.

The value of goods imports fell by 0.4% in February, because of falls in fuel and chemical imports from non-EU countries.

The value of goods exports increased by 0.9%, with a rise in exports to non-EU countries partially offset by a fall in exports to the EU.

The FTSE 100 index opened up 61.11 points, 0.8%, at 7,984.91. The FTSE 250 was up 130.77 points, 0.7%, at 19,917.64, and the AIM All-Share was up 2.98 points, 0.4%, at 761.81.

“Positive UK GDP growth in February, coming together with an upgrade to the January estimate, will do nothing to reassure markets that interest rate cuts are locked in for the first half of this year,” said Nicholas Hyett, analyst at Wealth Club.

“Having said that, areas of the economy that are dependent on discretionary spending do look kind of soggy. Accommodation and food and drink services both contracted in February and the construction sector is in the doldrums (with eight out of nine sectors seeing a decrease month-on-month). There are suggestions wet weather may have played a part here, but an interest rate cut could be quite helpful to those areas of the economy nonetheless.”


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