UK economy's growth points to exit from recession

Britain's tepid economy is on course to exit a shallow recession after output grew for a second month in a row in February, and January's reading was revised higher, official data showed on Friday.

Gross domestic product expanded by 0.1% in monthly terms in February, as expected in a Reuters poll of economists.

January's reading was revised to show growth of 0.3%, up from 0.2% earlier, the Office for National Statistics (ONS) said.

The data confirm Britain's economy started 2024 on a stronger footing, with the three-month average growth rate rising to 0.2% in February from zero in January - the highest such reading since August.

The figures are also likely to reinforce the Bank of England's cautious tone around the prospect for interest rate cuts, with the economy on track to slightly exceed the central bank's expectation for a 0.1% expansion in the first quarter.