UK Economy Surges Past Market Forecasts

(MENAFN) Britain's economy expanded 0.5% month-on-month in February, dramatically outpacing the 0.1% growth markets had anticipated, the Office for National Statistics (ONS) reported Thursday.

The result marked a sharp acceleration from January's modest 0.1% expansion, with gains recorded across all three major sectors. Construction output climbed 1% on a monthly basis, while both services and production each grew 0.5%. On an annual basis, GDP rose 1% — well above the 0.6% forecast.

The ONS credited the broader momentum across recent months, stating: "Real gross domestic product (GDP) grew by 0.5%, following a growth of 0.3% in the three months to January 2026, and no growth in the three months to December 2025."

Over the three months to February, services output rose 0.5% and production advanced 1.2%, though construction pulled back 2% over the same period.

Industrial Output Stages Comeback
British industrial production rebounded 0.5% in February following a 0.1% contraction in January, again beating forecasts. The ONS attributed the gains to specific subsectors, noting: "The rise in monthly production output in February 2026 was because of strength in 'mining and quarrying' (up 3.9%), 'electricity and gas' (up 1.5%), and partially from 'water supply and sewerage' (up 0.2%); these were minimally offset by 'manufacturing' (down 0.1%)."

Mining and quarrying's 3.9% advance was spearheaded by crude petroleum and natural gas extraction, which surged 5.1% — underscoring the energy sector's outsized contribution to February's stronger-than-expected economic performance.

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