UK economy grew slightly in February

The UK economy grew slightly in February, offering hope it is on its way out of recession.

The economy grew by 0.1%, official figures show, boosted by production and manufacturing in areas such as the car industry.

The Office for National Statistics (ONS) said that construction was dampened by wet weather though.

This is an early estimate, but signals how the UK, which entered recession at the end of 2023, is faring.

The new figures on Friday were in line with what economists were expecting.

Liz McKeown, director of economic statistics at the ONS, said that the services sector, which includes things like hairdressing and hospitality, also grew a little with public transport and haulage having a strong month.

She added that looking across the three months to February as a whole, the economy grew for the first time since last summer.

The official statistics body also revised its previous estimate for January from 0.2% growth up to 0.3%.

In February, output from the UK's production industry led the economy's growth, rising by 1.1%, compared to a fall of 0.3% in January.

The construction sector, however, saw output fall by 1.9% as persistent rain hampered building projects.

Chancellor Jeremy Hunt suggested that the new figures were a "welcome sign that the economy is turning a corner".

"We can build on this progress if we stick to our plan," he added.

Growing the economy was one of five key pledges that Prime Minister Rishi Sunak made last year as consumers and businesses were squeezed by higher prices and interest rates.

Most economists, politicians and businesses like to see gross domestic product (GDP) rising steadily because it usually means people are spending more, extra jobs are created, more tax is paid and workers get better pay rises.