UK's unexpected economic rebound boosts govt amid Trump tariffs

Britain's system grew much than expected successful February. Photo: Kirsty Wigglesworth / POOL/AFP
Source: AFP

Britain's economy grew acold much than expected successful February, authoritative information showed Friday, successful a uncommon portion of bully quality for the Labour authorities arsenic it grapples with unpredictable US tariffs.

Gross home merchandise roseate 0.5 percent successful the month, rebounding from an upwardly revised fig of zero percent maturation successful January, the Office for National Statistics (ONS) said.

The authorities has struggled to kickstart maturation since it came to powerfulness successful July, with the caller prime up successful the system coming conscionable earlier US President Donald Trump's tariffs threatened to hamper planetary growth.

Fresh economical headwinds and stubborn ostentation led the UK to precocious halve its 2025 maturation forecast.

But Friday's figures exceeded economists' expectations of a overmuch smaller 0.1 percent summation successful GDP successful February.

In different boost, the ONS besides revised its figures from January to zero percent growth, up from a 0.1 percent contraction.

"These maturation figures are an encouraging sign, but we are not complacent," concern curate Rachel Reeves said.

"The satellite has changed, and we person witnessed that alteration successful caller weeks," she added, arsenic Trump's sweeping stop-start tariffs roil planetary markets.

Analysts pass that the 10 percent levy connected US imports of British goods could further weaken concern and user sentiment.

Specific industries specified arsenic auto, alloy and aluminium look adjacent steeper tariffs of arsenic precocious arsenic 25 percent.

"I cognize this is an anxious clip for families who are disquieted astir the outgo of surviving and British businesses who are disquieted astir what this alteration means for them," Reeves said.

Prime Minister Keir Starmer connected Monday loosened electrical conveyance targets for carmakers impacted by tariffs successful bid to "shelter British concern from the storm."

'Precarious position'

"The UK is successful somewhat of a precarious presumption close now, caught successful the crossfire of the perpetually changing economical argumentation of the US," said Marcus Brookes, main concern serviceman astatine Quilter Investors.

"The authorities volition request to deliberation creatively and find immoderate speedy wins successful bid to prolong this affirmative speechmaking and negate the economical interaction tariffs volition bring," helium added.

Under the strain of choky nationalist finances, Reeves precocious announced billions of pounds of spending cuts, including to disablement payment payments, successful the hopes of shoring up the nationalist purse.

ONS manager of economical statistic Liz McKeown noted that determination was "widespread maturation crossed some services and manufacturing industries," successful February.

"Across the past 3 months arsenic a whole, the system besides grew powerfully with broad-based maturation crossed services industries," she added.

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Source: AFP