GDP grows by surprising amount but it could be last uptick for a while

The UK economy grew far more than expected in the month before the war in Iran began, latest official figures show.

The three months to February saw 0.5% growth in gross domestic product (GDP), the standard measure of the value of an economy and everything it produces, according to data from the Office for National Statistics.

Revised figures, also published on Thursday, said there was no growth in the three months to December.

February's growth was down to expansion in the largest part of the economy: services.

In particular, wholesaling, market research, hospitality, and publishing all performed well in the three months to February, said the ONS's chief economist, Grant Fitzner.

UK car production also recovered from the August cyberattack at Jaguar Land Rover, which for more than a month forced a halt to production across its global operations. Overall, production in the UK grew 1.2%.

Growth would have been higher but construction output fell, just more slowly than previously.

Leasing and intellectual property licensing are also continuing to contract, Mr Fitzner added.

Economic expansion of just 0.1% had been forecast for February by economists polled by the Reuters news agency.

The government has repeatedly said its number one priority is economic growth but the rises in GDP have been slight.

Last growth for some time?

Yet it may be the last period of growth for some time.

Despite the current two-week ceasefire, the Iran war is forecast to hit the UK economy more than others.

Britain's economic prospects have been downgraded more than any other major economy in the International Monetary Fund's latest update on the state of the world.

A similar downgrade was made by the Organisation for Economic Co-operation and Development (OECD).

(c) Sky News 2026: GDP grows by surprising amount but it could be last uptick for a while