UK gross domestic product (GDP) expanded by 0.5% month-on-month in February, which is the biggest monthly increase in over two years, the Office for National Statistics (ONS) has revealed.

The latest data follows month-on-month growth of 0.1% in December 2025 and January respectively.

In February, services and production output both increased by 0.5%, while construction output grew by 1%.

In the three months to February, the ONS found that GDP grew by 0.5% compared to the three months to November 2025. This follows growth of 0.3% in the three months to January and no growth in the three months to December 2025.

The ONS stated that the largest contribution to this growth was a 0.5% increase in services output. Production output jumped by 1.2% in the three months to February, while construction output dropped by 2%.

Despite this expansion in GDP, analysts are cautious of future results, with the latest figures not yet accounting for the full effect of the conflict in the Middle East.

Investment strategist at Quilter, Lindsay James, said that while the UK economy has “bounced back somewhat” following a fragile start to the year, this may be short lived.

She stated: "Given this will only have taken into account the first days of the US-Iran conflict, the true fallout, however, is yet to be felt, but nevertheless this will be a welcome relief to the Labour government. Growth has also been revised up to 0.3% in January too, suggesting that a recovery in the UK economy was underway prior to events in Iran kicking off at the end of February.

"2026 was the year the Government was hoping to build on following a challenging first 18 months in power, but all that work may have just been undone by events out of Labour’s control."

Senior asset allocation analyst at Rathbones, Simon Hoyes, added that the latest update "hasn't significantly changed" its outlook for the UK economy.

He concluded: "The main reason we aren’t paying too much attention to the release is that the data are old news given the spike in energy prices caused by the outbreak of war in the Middle East on the final day of February.

"Oil and natural gas prices are substantially higher than where they were two months ago, which will weigh on UK GDP growth. We have already seen evidence that this is occurring from timelier indicators such as the S&P Global PMI surveys, with the composite index there falling close to a level consistent with stagnation in March.

"The evolution of the conflict, and by extension, energy prices, will be key for the economic outlook in the UK and the rest of the world over the coming months and quarters. Should energy prices remain elevated around recent levels for an extended period, we think UK GDP growth would slow to a crawl."

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