The UK economy grew by 0.5% in February, recovering from a 0.1% decline in January. The growth exceeded the expectations of economists, who had forecast an increase of 0.1%. The service sector and the manufacturing sector showed growth, which led to a surge in economic growth. The British pound strengthened by 0.19% to 1.29, while the FTSE 100 stock index rose by 3%. The increase in February may be the last before the global trade war begins to put pressure on businesses and consumers. Households and employers faced an increase in financial obligations: households faced an increase in utility bills and municipal taxes, and employers faced tax increases of 25 billion pounds. In 2023, the economy grew by 1.1%. The growth forecast for 2025 has been lowered to 1%, although growth of 1.9% is expected in 2026. The imposition of tariffs on U.S. imports raises doubts about these forecasts. Economic activity in the UK and Europe has slowed due to uncertainty about US trade policy. At the same time, there are signs of improvement in consumer demand: retail sales exceeded expectations, and wage growth is outpacing inflation.
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