The UK economy showed stronger-than-expected growth in February 2024, expanding by 0.5% after a stagnant January, according to the latest Office for National Statistics (ONS) data. This rebound was driven by broad-based growth across key sectors, including services, production, and construction, alongside a narrowing trade deficit.
Key Highlights of UK Economic Growth in February 2024
GDP growth of 0.5% in February, beating forecasts of 0.1%
Services sector expanded by 0.3%, contributing significantly to economic recovery
Production output surged by 1.5%, with manufacturing leading the gains
Construction grew by 0.4%, recovering from a slight January dip
Trade deficit narrowed to £1.0 billion, the lowest since mid-2021
Sector-by-Sector Breakdown
1. Services Sector Drives Economic Expansion
The UK services sector, which accounts for nearly 80% of GDP, grew by 0.3% in February, following a 0.1% increase in January. Over the three months to February, services output rose by 0.6%, reinforcing its role as the backbone of the economy.
2. Manufacturing and Production Output Rebounds
After a 0.5% decline in January, production output jumped 1.5% in February, with manufacturing being the primary growth driver. The three-month performance also improved, rising by 0.7%, signaling resilience in industrial activity.
3. Construction Sector Shows Modest Growth
Construction output increased by 0.4% in February, recovering from a 0.3% dip in January. However, the sector showed no growth over the three-month period, indicating ongoing challenges.
Trade Deficit Narrows to Near Three-Year Low
The UK trade deficit improved significantly, shrinking by £7.5 billion to just £1.0 billion in the three months to February—the smallest deficit since July 2021.