The British economy outperforms 0.5 % growth in February

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The British economy grew 0.5 percent in February, overcoming analysts’ expectations and providing some positive news to Chancellor Rachel Reeves because it is added with the effect of US President Donald Trump’s tariff.

The monthly GDP number was on Friday from the National Statistics Office higher than both expectations by 0.1 percent by economists surveyed by Reuters and the zero growth figure in January, and it was revised from a previous estimate of 0.1 percent.

“The economy has grown strongly in February with widespread growth in both services and manufacturing,” said the director of economic statistics, Liz McChyun.

She said that programming, communications and car dealers all had strong months, while manufacturing, electronics and pharmaceutical preparations led the road. It also picked up the manufacture of cars after its last weak performance.

The numbers precede the Trump advertisement on April 2 that it will impose a tariff for a highly descent on most countries in the world, including a 10 percent tax for the United Kingdom. The move sparked a sharp decrease in global stock markets and pushed fears of stagnation on both sides of the Atlantic.

On Wednesday, the US President announced a 90 -day stand in most of his “mutual” duties, but the UK’s tariff is still in place.

Given the increase in the risks to the British economy, investors now expect that the Bank of England will reduce interest rates in May, and then borrowing costs decreased twice before the end of the year.

This is a developing story.