Tuesday 13 April 2021 7:22 am | Updated: Tuesday 13 April 2021 7:47 am

UK GDP grows 0.4 per cent in February despite third lockdown restrictions

The apparent stand-off between REA and Rightmove could be taken as a sign that British companies are resisting foreign takeovers.

The UK economy edged up 0.4 in February as it rebounded from a 2.2 per cent decline in January, the Office for National Statistics said this morning.

Wholesale and retail trade sales picked up slightly, but consumer-facing services industries remained well below pre-pandemic levels. The services sector grew by 0.2 per cent.

Output in the productions sector rose by one cent per during the same month, while manufacturing grew 1.3 per cent following a contraction in January.

The construction sector saw a 1.6 per cent improvement, driven by growth in both new work and repair and maintenance.

Clive Docwra, managing director of construction consultancy McBains, said: “Today’s figures are another sign that construction industry is maintaining its recovery following the downturn over the last year.

“Confidence is still fragile in some work sectors, but there’s a definite feeling of the glass being half full, rather than half empty.”

February’s GPD is 7.8 per cent below the levels seen in the same month last year, compared with 3.1 per cent below the initial recovery peak in October 2020.

Cause for optimism

Emma-Lou Montgomery, associate director at Fidelity International, said that February’s GDP figures show a “rosier picture” after a sobering start to the year.

“There is much reason for optimism. Consumers have enthusiastically returned to the high street, glasses have been raised to the opening of outdoor dining and drinking as restrictions ease and the vaccination programme continues at pace.

“This all points towards a positive direction of travel for the UK economy.”