UK GDP increased by only 0.1% month-on-month in February, the Office for National Statistics (ONS) published today. The slight increase was well below analysts’ expectations of 0.3% growth after 0.8% growth in January. On a year-over-year basis, this translates into GDP growth of 9.5%.
The small increase in GDP came as a surprise, especially since almost all COVID restrictions were lifted in the UK. This had raised hopes that this would boost the economy in the UK.
Meanwhile, industrial production contracted by 0.6% month-on-month in February, also well below analysts’ expectations. Following an increase of 0.7% in January, experts had expected growth of 0.3%.
According to the ONS, manufacturing and vehicle production slumped by 5.4%, due to the decline in automotive manufacturing.
Manufacturing production also contracted by 0.4% MoM in February, which was also below analysts’ expectations. An increase of 0.3% was expected, following an increase of 0.8% in January.
The trade deficit was GBP -20.59 billion in February, down slightly from GBP -23.90 billion in January. A deficit of GBP -20.00 billion had been expected.