The UK economy unexpectedly grew by 0.5% in February, exceeding analyst predictions of 0.1%. This surge was driven by a 0.3% increase in services and a significant recovery in production and construction output. The positive data, however, is overshadowed by concerns over new US tariffs on UK exports, which could prompt the Bank of England to cut interest rates in May. Economists worry that the uncertainty surrounding these tariffs, coupled with welfare cuts and increased business taxes, will negatively impact future economic growth.

Prepared by Christopher Adams and reviewed by editorial team.