UK Economy performs better than expected

GDP grew 0.3% in the three months to February 2019
UK gross domestic product (GDP) grew by 0.3% in the three months to February 2019

The UK economy performed stronger than expected, with GDP growing by 0.3% in the three months to February 2019, despite concerns around Brexit.

The services sector was the largest contributor, growing by 0.4% in the three months to February 2019, with the production sector growing by 0.2%. However, the construction sector contracted by 0.6%, resulting in a small negative contribution to GDP growth.

Commenting on today’s GDP figures, Head of GDP Rob Kent-Smith said: “GDP growth remained modest in the latest three months. Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months.”

UK GDP growth, Q2 2017 until December 2018 to February 2019

Source: Office for National Statistics – GDP monthly estimate

Breakdown of GDP growth rates by month

December 2018January 2019February 2019
GDP-0.3%0.5%0.2%
Index of Services-0.2%0.3%0.1%
Index of Production-0.3%0.7%0.6%
Manufacturing-0.5%1.1%0.9%
Construction-2.5%3.5%0.4%
Agriculture-0.8%-1.3%-1.3%
Source: Office for National Statistics – GDP monthly estimate

Gross domestic product (GDP) measures the value of goods and services produced in the UK and is a key indicator of the size of and growth in the economy.