| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.1% | 0.1% to 0.1% | 0.5% | -0.1% | 0.0% |
| 3-Months over 3-Months | 0.6% | 0.2% | 0.3% |
Highlights
The UK economy showed renewed momentum in February 2025, with monthly real GDP rising by 0.5 percent, marking a notable turnaround from January's stagnation. This upturn was broad-based, as all main sectors contributed to growth, signalling a coordinated recovery.
The services sector, the backbone of the UK economy, expanded by 0.3 percent in February and 0.6 percent over the preceding three months, underpinning the broader economic performance. Though modest, this steady growth reflects consumer and business activity resilience, particularly as services have sustained momentum since late 2024.
More striking was the rebound in production output, which surged by 1.5 percent after January's decline. Manufacturing primarily led this, suggesting renewed demand and potential supply chain stabilisation. Construction output also edged up 0.4 percent, reversing January's dip, although three-month figures show stagnation, hinting at lingering pressures in the building sector.
With quarterly GDP up 0.6 percent, this data paints a cautiously optimistic picture. While challenges remain, particularly in construction, February's figures reflect a growing economy with improving industrial performance and steady service sector support. The latest update brings the RPI to 23 and RPI-P to 35, meaning that economic activities in the UK economy are well ahead of market expectations.
The services sector, the backbone of the UK economy, expanded by 0.3 percent in February and 0.6 percent over the preceding three months, underpinning the broader economic performance. Though modest, this steady growth reflects consumer and business activity resilience, particularly as services have sustained momentum since late 2024.
More striking was the rebound in production output, which surged by 1.5 percent after January's decline. Manufacturing primarily led this, suggesting renewed demand and potential supply chain stabilisation. Construction output also edged up 0.4 percent, reversing January's dip, although three-month figures show stagnation, hinting at lingering pressures in the building sector.
With quarterly GDP up 0.6 percent, this data paints a cautiously optimistic picture. While challenges remain, particularly in construction, February's figures reflect a growing economy with improving industrial performance and steady service sector support. The latest update brings the RPI to 23 and RPI-P to 35, meaning that economic activities in the UK economy are well ahead of market expectations.
Market Consensus Before Announcement
Forecasters see GDP up by a marginal 0.1 percent on the month in February after a 0.1 percent decline in January.
Definition
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The monthly report is based on output data only as the income and expenditure series are not available.
Description
GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.
