london skyline

United Kingdom GDP February 2019

United Kingdom: The economy performs better than expected in February amid stockpiling

According to monthly GDP data released by the Office for National Statistics (ONS), economic activity rose 0.2% in February over the prior month in seasonally-adjusted terms, down from January’s 0.5% increase but above market expectations of a flat reading. In the December-February period, the economy grew 0.3%, matching the reading in the November-January period. The economy’s unexpectedly strong performance in February can be explained by manufacturing firms stockpiling in preparation for a possible no-deal Brexit; however, when this effect predictably unwinds in the coming quarters it could depress growth. Moreover, the economy is still growing notably slower than before 2018, as Brexit uncertainty dampens business investment.

Looking at a sector-by-sector picture, the December-February reading was underpinned by a solid showing from the manufacturing sector—likely lifted by stockpiling—and services, with the latter aided by rock-bottom unemployment and solid wage growth.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest