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Summary
- UK GDP growth stood at 0.4 per cent in February 2021.
- February GDP is 3.1 per cent below October 2020 reading.
- ONS revised January’s 2.9 per cent contraction to 2.2 per cent.
The UK economy expanded marginally in February 2021, largely due to the partial uptick in economic activity in the hopes of reopening in the successive months. The output of services, manufacturing and construction rose 0.2 to 1.6 per cent, respectively, bouncing back from the contraction realised in the previous month.
According to the data released by the Office for National Statistics (ONS), the gross domestic product (GDP) of the United Kingdom is estimated to have risen by 0.4 per cent in February.
A large part of this expansion was just a reversal from a steep monthly contraction in January when the UK registered a de-growth of 2.9 per cent. The ONS has done an upward revision in the GDP estimates for January 2021, following which the contraction in January stands at 2.2 per cent.
The government restrictions remained largely similar in February as the authorities decided to reopen in a phased manner in multiple stages. The idea of planned easements presented by Prime Minister Boris Johnson seemed to have regenerated the economic confidence slightly amidst the businesses.
UK GDP February 2021: Key things to note
- Subsequent to the slight uptick in the UK GDP, the February 2021 reading is still 7.8 per cent lower as compared to the measure recorded in February 2020.
- Also, the February GDP is 3.1 per cent below the GDP value seen in October 2020, when businesses and industries indicated the initial recovery.
- All the major sectors contributing to the UK GDP remained well below their respective readings during February 2020, the last pre-pandemic month.
- The services sector emerged as the chief contributor in the overall YoY decline, as the sector’s reading stood 8.8 per cent below as against the February 2020 measure.
- The services sector reading in February is “notably lower” as compared to the October 2020 measure.
- Following a gradual upswing in retail, as well as wholesale sales, the services sector of the UK recognised growth of 0.2 per cent in February.
- However, the consumer-facing services and retail industries on the whole stood well below the pre-pandemic levels, February 2020.
- The production sector output in February grew by 1 per cent following the manufacturing growth of 1.3 per cent after the contraction in January.
- Predominantly led by the new construction, repair, maintenance and civil works, the construction sector registered a growth rate of 1.6 per cent in February.
