UK economy takes another step away from recession after recording 0.1% growth in February

The UK economy took a step away from recession after it was announced that it grew in February.

The Office for National Statistics (ONS) released new figures which shows gross domestic product (GDP) grew by 0.1%. The ONS also revised previous figures for January from 0.2% to 0.3% growth.

The growth comes after a strong period for the manufacturing sector. Liz McKeown, ONS director of economic statistics, said: “The economy grew slightly in February with widespread growth across manufacturing, particularly in the car sector. Services also grew a little with public transport and haulage, and telecommunications having strong months. Partially offsetting this there were notable falls across construction as the wet weather hampered many building projects.”

This is despite the construction sector output falling by 1.9%, impacted that the weather which saw parts of south England experiencing the wettest February since 1836. Production sector output grew by 1.1%, up from the 0.3% drop in January.

Growth in both January and February were welcomed after the UK slipped into recession in late 2023, with a drop of at least 1.29% needed in march to make the UK slip back into the difficult position. Rob Wood chief UK economist at Pantheon Macroeconomics said: “We are optimistic about the near-term outlook for GDP. Both services and manufacturing have returned to growth this year and the construction sector will likely join them once the rain disruption passes.”

Chancellor of the Exchequer Jeremy Hunt said that February’s figures was a foundation to build on. He said: “These figures are a welcome sign that the economy is turning a corner, and we can build on this progress if we stick to our plan.” However, shadow Chancellor Rachel Reeves said that the latest figures was a sign of “low growth”. She said in a statement: “After 14 years of Conservative economic failure, Britain is worse off with low growth and high taxes. The Conservatives cannot fix the economy because they are the reason it is broken.”