UK economy grew in February during third national lockdown

13 April 2021, 08:51

Gross domestic product (GDP) in the UK grew by 0.4% in February
Gross domestic product (GDP) in the UK grew by 0.4% in February. Picture: PA

By Patrick Grafton-Green

The UK economy grew in February during the third national lockdown but was still down almost 8% on pre-pandemic levels, according to official figures.

Gross domestic product (GDP) grew by 0.4%, the Office for National Statistics (ONS) said.

This was an improvement on a 2.2% decline in January, which itself had been revised upwards from a previously predicted 2.9% fall.

Nevertheless, the February reading was slightly below the forecasts of some analysts, with experts at Investec predicting a 0.7% improvement for the month.

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The construction sector saw activity jump by 1.6% for the month amid a lift in new work and maintenance.

Production and manufacturing activity also improved, with the two sectors revealing 1% and 1.3% improvements respectively.

Meanwhile, the service sector remained particularly constrained, reporting just 0.2% growth, as hospitality and retail remained constrained by pandemic restrictions.

An ONS spokeswoman said: "The economy showed some improvement in February after the large falls seen at the start of the year but remains around 8% below its pre-pandemic level.

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"Wholesalers and retailers both saw sales pick up a little, while manufacturing improved with car producers experiencing a partial recovery from a poor January.

"Construction grew strongly after revised figures showed they had struggled in the last couple of months.

"Exports to the EU recovered significantly from their January fall, though still remain below 2020 levels.

"However, imports from the EU are yet to significantly rebound, with a number of issues hampering trade."

Suren Thiru, head of economics at the British Chamber of Commerce, said: "The latest data confirms a modest return to growth in February.

"However, coming after a contraction in January, it does little to alter the prospect of a downbeat first quarter for the UK economy.

"The pick-up in output in February reflected a broad-based improvement in activity with all the main sectors recording an increase in growth.

"The clarity provided by February's announcement of a road map for reopening also helped support output in the month."

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