However, most goods from the UK now face a 10% tariff at the US border, with certain products like cars facing a 25% tax, which is expected to heighten costs for UK exporters.

Despite the positive growth figures, mining and quarrying, particularly the oil and gas industry, experienced a significant decline of 3% during the same period.

Shadow Chancellor Mel Stride criticized the Labour government, claiming that their policies have harmed growth and left families financially worse off.

These tariffs, initiated by former President Donald Trump, have raised concerns about global economic stability and are likely to exacerbate inflation in the UK.

The Bank of England is expected to cut interest rates in May 2025 to support households and businesses amidst ongoing economic pressures.

Real wages have been improving due to decreasing inflation, allowing consumers to spend more, which contributed to the economic growth.

Exports to the US surged by £500 million in February, marking the third consecutive monthly increase as US companies rushed to import before tariffs were implemented.

Chancellor Rachel Reeves acknowledged the growth as a positive sign but emphasized the need for caution due to the uncertain economic outlook and rising costs for families and businesses.

Despite the encouraging growth, concerns remain about inflation and rising costs, with a significant tax burden anticipated for employers amounting to £25 billion.

Economists warn that the current economic momentum may be short-lived due to potential negative impacts from increased tariffs and business taxes.

The UK economy grew by 0.5% in February 2025, surpassing economists' expectations of just 0.1% growth following a contraction in January.

This growth was primarily driven by a 0.3% increase in the services sector, indicating consumer resilience despite ongoing economic concerns.