UK Economy Exceeds Expectations with 0.5% Growth

The UK economy grew by 0.5% in February 2025, outpacing economists' expectations of a 0.1% increase, marking the strongest monthly performance in nearly a year. This growth was driven by a broad-based expansion in services and manufacturing, with notable contributions from computer programming, telecommunications, and car dealerships, as well as electronics and pharmaceuticals in manufacturing. Despite concerns about the impact of President Trump's tariffs, which raise costs for UK exports to the US and imports from China, the British economy demonstrated resilience. The pound strengthened and equities rose in response to the positive economic data. However, long-term economic forecasts remain cautious due to potential trade disruptions and domestic policy changes, alongside rising employment taxes and minimum wage. The increase in GDP comes as businesses face ongoing global trade uncertainties.