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UK economy beats forecasts with stronger-than-expected growth in February

The UK economy delivered an unexpectedly strong performance in February, with gross domestic product rising by 0.5% month on month, according to the Office for National Statistics. That was well above the forecast in a Reuters poll of economists, and it marked the strongest monthly gain since January 2024.  

Official data also showed growth of 0.5% across the three months to February, up from 0.3% in the previous rolling three-month period. The ONS said services were a key driver, while a recovery in car production also helped lift output. 

For the government, the figures offer a welcome boost after months of pressure over weak growth. But the positive mood may not last. Much of the data came before the latest energy shock linked to the Iran conflict, and economists have already warned that higher fuel costs and wider global uncertainty could hit momentum in the months ahead. 

Markets reacted positively at first, with sterling edging higher after the release. Even so, the bigger question is whether February was the start of a genuine recovery or simply a strong snapshot before a more difficult period for households and businesses. 

For now, the report gives ministers and investors a more upbeat headline, but it does not remove the pressure on the wider economy. Inflation risks, energy prices and interest-rate uncertainty are still likely to dominate the next stage of the UK economic story. 

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