Rachel Reeves‘ task in attempting to revive the UK’s sluggish economy has been underlined by new Office for National Statistics figures showing it grew by by 0.5% in February – having failed to grow at all the previous month.
Services, the largest sector, rose 0.5% in both measures and was the main driver of growth. Production increased by 0.5% monthly and 1.2% over three months, boosted by manufacturing (particularly transport equipment). Construction grew 1.0% in February but fell 2.0% over three months. Previous estimates were revised: three-month growth to January 2026 rose from 0.2% to 0.3%, while January monthly growth was revised up to 0.1%. GDP was 1.0% higher than February 2025.
The release, published on 16 April 2026, notes that early estimates are subject to revision as more data become available.
ONS Chief Economist Grant Fitzner commented: “Growth increased further in the three months to February led by broad-based increases across services.
“Within services, growth was driven by wholesaling, market research, hospitality, and publishing, which all performed well in the three months to February. Meanwhile car production recovered from the effects of the autumn cyber incident.”
“Growth in services and production was partially offset by another fall in construction, albeit at a slower rate than previously, with leasing and intellectual property licensing also continuing to contract.”
The latest data comes a month after figures suggesting Britain’s economy flatlined in January even before conflict flared in the Middle `east, with worries over rising inflation as result of spiking oil prices. Official figures showed zero growth in gross domestic product (GDP) in the first month of 2026, against expectations for output to increase by 0.2%.
At the time, economists warned a prolonged conflict and ongoing spike in oil prices – already above 100 US dollars for the first time in nearly four years – could even send the economy into reverse in 2026.
The January figures followed meagre growth of just 0.1% in the final three months of last year amid budget uncertainty and a subdued performance in December, with growth of 0.1% also in the month of December.
Speaking in Washington on Wednesday, Chancellor Rachel Reeves voiced her concern about Donald Trump‘s war on Iran, which she called a mistake.
She said: “We are a net importer of gas which does mean we are impacted by the conflict in the Middle East, which is why I do come with this message loud and clear along with 10 other countries.“Our growth would be higher and inflation lower if this conflict comes to an end and that will only happen with de-escalation.”
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