The UK economy recorded stronger-than-expected growth in the months leading up to the outbreak of conflict in Iran, according to newly released official figures.
Data from the Office for National Statistics shows that gross domestic product (GDP) grew by 0.5% in the three months to February, surpassing economists’ forecasts. The economy also expanded by 0.5% in February alone, highlighting a short-term boost in activity.
The growth was largely driven by the services sector, with strong performances in wholesaling, market research, hospitality, and publishing.
However, this rebound may prove temporary. Revised figures indicate that the UK economy recorded no growth in the three months to December, suggesting underlying fragility.
While industrial production rose by 1.2%—helped by a recovery in car manufacturing after disruptions at Jaguar Land Rover—the overall picture was dampened by continued weakness in the construction sector, which remained in decline.
Government officials welcomed the figures, pointing to ongoing efforts to stabilise the economy, boost investment, and reduce business costs. Still, economists warn that rising geopolitical tensions and global uncertainty could weigh on growth in the months ahead.