UK economy grew better-than-expected by 0.5% in February before Iran war chaos

UK economy surged by 0.5% in February before Iran war chaosOfficial figures have revealed the UK economy performed better than experts were predicting in February - but an energy shock caused by the Middle East war is expected to cause a major blowCommentsMoneyGraham Hiscott Business and Consumer Editor07:50, 16 Apr 2026Updated 08:01, 16 Apr 2026View ImageRachel Reeves enjoyed a boost from growth in February but before the full impact of the Iran war(Image: AFP via Getty Images)The UK economy grew by shock 0.5% in February - but before the full impact of the Middle East war.‌It marked a sharp increase following a growth of just 0.1% in January and the same in December, the Office for National Statistics said.‌However, there are fears that the recovery - welcome news for Chancellor Rachel Reeves and Labour - will be undone by the Iran war, which erupted right at the end of February.‌Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “Well, that was a shock. February data bring some confirmation for our view that the economy was picking up speed before the Iran war as Budget uncertainty wore off."TUC General Secretary Paul Nowak said: “It’s positive that our economy had a strong February as consumers returned to our shops. But Donald Trump’s illegal war risks setting back material gains seen in recent months and making us all poorer.“Working people and businesses are already being hammered by Trumpflation – with petrol, gas and mortgage costs going through the roof.‌“That’s why the government should pull out all the stops to protect our economy from the effects of this Trump-slump – including immediately bringing forward a temporary, targeted gas price cap and expanding access to its energy price support scheme to make sure it reaches crucial sectors.“And longer-term, ministers must go all out to protect the country – and ensure those with the deepest pockets shoulder the cost.”Barret Kupelian, chief economist at PwC, said: “Today’s data suggests it h...