UK GDP Growth Accelerates in February 2026 as Industrial Output Rebounds

Broad-Based Expansion in GDP

UK GDP increased by 0.5% month-on-month in February 2026, according to official data, marking the strongest monthly gain since January 2024. This followed a revised 0.1% rise in January and resulted in year-on-year GDP growth of 1.0%, the steepest annual expansion since September of the previous year.

Growth was driven primarily by the services sector, which also rose 0.5% in February after a 0.1% increase in January. Within services, the largest positive contribution came from administrative and support service activities, which expanded by 2.0%, supported by a 2.5% rebound in employment activities. There were additional gains in wholesale and retail trade and the repair of motor vehicles, up 0.7%. These improvements were partly offset by a 0.3% decline in accommodation and food services.

Production output increased 0.5% in February, reversing prior declines. This was supported by a 3.9% rise in mining and quarrying and a 1.5% increase in energy supply. Manufacturing output, however, edged down 0.1%. The construction sector also contributed positively, with output rising 1.0%, led by private housing activity.

Industrial Production Beats Expectations but Falls Annually

Industrial production in the UK rose 0.5% month-on-month in February 2026, exceeding market expectations of a 0.2% increase and rebounding from a 0.1% decline in January. The improvement was underpinned by a sharp 3.9% recovery in mining and quarrying, driven by a 5.1% increase in the extraction of crude petroleum and natural gas. Electricity, gas, steam, and air-conditioning supply also expanded at a faster pace, up 1.5% after flat growth in January.

By contrast, manufacturing output fell 0.1% in February, reversing a 0.2% increase in the previous month. The decline was mainly due to lower output in transport equipment and in basic metals and metal products, both down 2.1%, as well as a 1.2% drop in food products.

On an annual basis, industrial activity in the UK decreased by 0.4% in February, following an upwardly revised 0.5% gain in the previous month. This indicates that, despite the monthly rebound, overall industrial production remained weaker than a year earlier.

FAQ

How much did UK GDP grow in February 2026?
UK GDP expanded by 0.5% month-on-month in February 2026 and by 1.0% compared with February a year earlier.

Which sectors contributed most to the GDP increase?
The main contributions came from services, particularly administrative and support service activities and wholesale and retail trade, alongside positive growth in production and construction.

How did UK industrial production perform in February 2026?
Industrial production rose 0.5% month-on-month, above expectations of a 0.2% increase, but fell 0.4% on an annual basis.

What happened to manufacturing output in February 2026?
Manufacturing output declined by 0.1% month-on-month, mainly due to lower production of transport equipment, basic metals and metal products, and food products.