Economic Review February 2026

Economy shows tentative rebound as inflation cools, markets rally and public finances improve.

Key takeaways

  • Office for National Statistics reported subdued late-2025 growth, but PMI signals stronger first-quarter expansion
  • Inflation fell to 3.0%, raising expectations that Bank of England may cut rates soon
  • FTSE 100 reached record highs as public finances posted a surprise January surplus