UK economy grew by 0.5 per cent prior to Iran conflict

The UK economy saw its biggest increase in more than two years in the three months to February - with a 0.5 per cent growth rate recorded.

According to the Office for National Statistics (ONS), services and production outputs grew by 0.5 per cent, and construction grew by 1.0 per cent in February 2026.

However, the figures cover a period before the outbreak of the Middle Eastern conflict.

Speaking about the figures, Greater Birmingham Chambers of Commerce senior policy advisor Ruth Fleet (pictured), said: “February’s unexpectedly positive GDP report shows that UK businesses are driving growth in the economy where they can, but this data predates the US-Iran conflict and the impact that this has had on global energy prices, the consequences of which will begin to be reflected in the March data.

“The GBCC, in partnership with the British Chambers of Commerce, are currently surveying on how events in the Middle East are affecting business operations.

“The Chambers survey takes around 10 minutes to complete, with the results being fed directly to key stakeholders such as the Government and the Bank of England.

“We strongly encourage you to contribute your insights to this survey, which will provide us with the live evidence we need to support the Chamber’s work advocating on your behalf.”