UK economy grew 0.4% in February during national lockdown

The UK economy grew 0.4 per cent in February as the country endured the latest lockdown measures, official figures show.

Despite a slight rebound as businesses adapted to restrictions, economic output remained 7.8 per cent down on its level a year earlier and 3.1 per cent below the initial recovery peak in October 2020.

Gross domestic product fell less than previously thought in January, down 2.2 per cent, not 2.9 per cent as had been estimated, the Office for National Statistics reported.

Restrictions were in place to varying degrees across all four nations of the UK throughout January and February.

Overall, all main sectors of the economy below their pre-pandemic levels, but only services remains notably lower than the initial recovery peak in October 2020.

Manufacturing is down 4.2 per cent compared to February last year, construction is down 4.3 per cent and services – which make up the bulk of the economy – remains 8.8 per cent down.

The latest figures indicate the scale of recovery required as services businesses including shops, restaurants and hairdressers begin to re-open their doors this week.

Retailers and pubs reported brisk trade on Monday, with queues forming outside stores on high streets as footfall doubled from the week before.

An Office for National Statistics (ONS) spokeswoman said: “The economy showed some improvement in February after the large falls seen at the start of the year but remains around 8 per cent below its pre-pandemic level.

“Wholesalers and retailers both saw sales pick up a little, while manufacturing improved with car producers experiencing a partial recovery from a poor January.

“Construction grew strongly after revised figures showed they had struggled in the last couple of months.

“Exports to the EU recovered significantly from their January fall, though still remain below 2020 levels.

“However, imports from the EU are yet to significantly rebound, with a number of issues hampering trade.”

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