The UK economy grew 0.5% in February from the previous month, official data showed on Friday, rebounding from a small contraction in January. Economists had forecast a more modest 0.1% rise.
The Office for National Statistics (ONS) said February’s growth was broad-based and hit both the services and manufacturing sectors. The economy contracted 0.1% in January, led by a decline in manufacturing.
The ONS, which released preliminary figures, said a 0.3% rise in the services sector contributed to the unexpected jump in economic growth. The services sector had grown 0.1% on a monthly basis in January.
The British pound rose about 0.19% on Friday against the dollar to 1.29 as of 09:45 Moscow time, while the FTSE 100 stock index jumped 3%.
February’s figures could represent the last period of growth before concerns over a global trade war begin to weigh on business investment and consumer spending.
Households have faced sharp increases in utility bills and council tax this month, while employers are dealing with tax increases worth £25bn.