UK economy grows in February boosted by food and retail

UK high street - re consumers
FinanceNewsSupermarkets

The UK economy experienced better than expected growth in February, with food and retail services helping to boost consumer-facing sectors, new data shows.

According to the latest figures from the Office for National Statistics (ONS), the economy grew by 0.5%, despite economists having predicted growth of just 0.1%, BBC reported.

The ONS said the positive result is mainly because of growth of 0.6% in the services sector, while production sector output also rose in February to 0.7%.


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In the consumer-facing services sector, output rose by 0.7%, following a fall of 0.1% in January. The largest contributions at industry level came from a 3% growth in wholesale and retail trade, and a 2.1% increase in food and beverage service activities.

Despite the better than expected figures, the UK economy is preparing for the impact that US President Donald Trump’s tariffs may have. As of 5 April, a minimum 10% tariff was applied on all UK imports to the US.

Prior to the official announcement made by Trump, the Organisation for Economic Co-operation and Development (OECD) had already downgraded UK and global economic growth forecasts over concerns that trade wars could drive up inflation.

The OECD reduced its prediction for UK growth in 2025 by 0.3 percentage points to 1.4%, and by 0.1 percentage points for 2026, to 1.2%. Global growth forecasts were cut by 0.2 percentage points for 2025 to 3.3%.

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UK economy grows in February boosted by food and retail

UK high street - re consumers

The UK economy experienced better than expected growth in February, with food and retail services helping to boost consumer-facing sectors, new data shows.

According to the latest figures from the Office for National Statistics (ONS), the economy grew by 0.5%, despite economists having predicted growth of just 0.1%, BBC reported.

The ONS said the positive result is mainly because of growth of 0.6% in the services sector, while production sector output also rose in February to 0.7%.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


In the consumer-facing services sector, output rose by 0.7%, following a fall of 0.1% in January. The largest contributions at industry level came from a 3% growth in wholesale and retail trade, and a 2.1% increase in food and beverage service activities.

Despite the better than expected figures, the UK economy is preparing for the impact that US President Donald Trump’s tariffs may have. As of 5 April, a minimum 10% tariff was applied on all UK imports to the US.

Prior to the official announcement made by Trump, the Organisation for Economic Co-operation and Development (OECD) had already downgraded UK and global economic growth forecasts over concerns that trade wars could drive up inflation.

The OECD reduced its prediction for UK growth in 2025 by 0.3 percentage points to 1.4%, and by 0.1 percentage points for 2026, to 1.2%. Global growth forecasts were cut by 0.2 percentage points for 2025 to 3.3%.

FinanceNewsSupermarkets

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