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The British economy increased by 0.5% in February, beating analysts’ expectations and providing positive news to Chancellor Rachel Reeves, as she claims the impact of US President Donald Trump’s prices.
The monthly Friday GDP figure of the Office for National Statistics was higher than 0.1% increase in forecasts by economists interviewed by Reuters and the zero growth figure of January, revised from a previous estimate of a contraction of 0.1%.
The director of economic statistics of the ONS, Liz McKewn, said: “The economy has greatly experienced growth in February with generalized growth in manufacturing services and industries.”
She said IT programming, telecommunications and car dealers have all had solid months, while in manufacturing, electronics and pharmaceutical products paved the way. The manufacturing of cars also resumed after its recent poor performance.
The figures prior to Trump’s announcement on April 2 that it would impose import prices raised on most countries in the world, including a 10% levy for the United Kingdom. This decision sparked a sharp drop in world stock markets and aroused fears of a recession on both sides of the Atlantic.
On Wednesday, the American president announced a 90-day break on most of his “reciprocal” functions, but the United Kingdom rates remain in place.
Given the increase in risks for the British economy, investors now expect the Bank of England will then reduce interest rates in May, then the drop in borrowing costs twice as far as the end of the year.
It is a story in development.
