UK GDP grew by 0.5% month-on-month in February with growth recorded across all sectors, the Office for National Statistics (ONS) has revealed.

The latest results follow no growth in January, after the ONS revised its data from a 0.1% shrink.

The ONS found that real GDP is estimated to have grown by 0.6% in the three months to February, compared with the three months to November 2024, which the ONS said was "mainly because of growth of 0.6% in the services sector".

Production sector output also rose by 0.7% in the three-month period, while construction showed no growth.

Chief sales and marketing officer at Phoebus Software, Richard Pike, said the increase in GDP was a "welcome surprise given the headwinds the UK economy has been facing".

He added: "With independent forecasts for 2025 GDP growth hovering around just 1.1%, and many analysts revising their predictions downward due to rising business taxes and softer global demand, this is an unexpected but positive development.

"While it’s too early to tell whether this growth marks the start of a more sustained recovery, it will certainly be interesting to see how this data impacts the Bank of England’s next interest rate decision."

The ONS estimated that output in the services sector grew by 0.3% month-on-month in February, after 0.1% growth in January. Across the 14 sub-sectors, nine saw increases in growth in the period.

Production output is estimated to have increased by 1.5% in February, following a fall of 0.5% in the previous month, while construction output is estimated to have grown by 0.4% month-on-month, after dropping by 0.3% in January.

Chief operating officer at Black & White Bridging, Damien Druce, added: "A modest rebound in February’s GDP figures gives a welcome sign that the economy is showing resilience after a shaky start to the year. While growth remains modest and uneven across sectors, even a slight lift provides reassurance that December’s momentum hasn’t entirely stalled. That being said, with different sectors still facing volatility, it’s far too early to celebrate a sustained recovery.

"It would be easier to have faith that construction output will help keep this steady momentum, based on the OBR’s predictions that housebuilding will reach a 40-year high and boost the economy while they’re at it, if they hadn’t admitted ‘significant uncertainties’ over the forecast mere days later. But their initial predictions and the new funding into training workers still provides a glimmer of hope."

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