The UK economy saw its biggest monthly rise in more than two years in February, according to figures from the Office for National Statistics (ONS).
The economy grew by a faster-than-expected 0.5%, while the ONS also revised its estimate for January up to 0.1% after previously saying the start of the year had seen no growth.
The figures cover a period before the outbreak of the US-Israeli war with Iran. 
This week the International Monetary Fund (IMF) cut its estimate for UK growth this year, warning it was set to be the hardest hit of the world’s advanced economies.
The IMF said it expected the UK to grow by 0.8%, down from the 1.3% prediction it had made in January before hostilities began.
David Bharier, Head of Research at the British Chambers of Commerce, said: “GDP growth of 0.5% in the three months to February shows the UK economy performed better than expected at the start of the year, with signs that momentum was building.
“But this data predates the Iran conflict, so the full impact of the energy and shipping shocks has yet to come through. Forecasts are being downgraded – we are now expecting just 1% for 2026, and the IMF this week warned the UK will be the hardest hit of the G7.
“Cost pressures remain the top constraint for most firms. Our latest survey shows 73% cite labour costs and 52% cite energy costs as price drivers, even before the escalation in the Middle East. For two years, we’ve seen more SMEs cutting back investment than increasing it.
“In the short term, de-escalation and rapid recovery to supply chains is the only way to prevent a deeper economic crisis.
“Longer term, the UK will only break out of this low-growth trap by unlocking investment, boosting exports, and harnessing the game-changing productivity potential of AI.”
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