The new data also saw January’s GDP increase revised upwards, and recent data for March suggests an upbeat performance, leading economists to believe that GDP rebounded strongly over the first quarter of 2024 as a whole.

Looking ahead, a sharp drop in inflation, driven by lower energy prices, is expected to support real incomes and household spending power. However, the pace of the consumer-led upturn is likely to be tempered by tighter fiscal policy and the lagged impact of past interest rate rises.

Andrew Goodwin, senior economic advisor to the EY ITEM Club, said: “After a strong 0.3% m/m rebound in GDP in January, revised up from 0.2%, the economy expanded further in February, growing by 0.1% m/m.

“The sector breakdown showed that higher output in the manufacturing and services sectors was the catalyst. Partially offsetting this was a large 1.9% m/m fall in construction activity as unusually wet weather hampered many building projects.”

He continued: “Monthly GDP data can be quite noisy, but the EY ITEM Club thinks there’s a good chance GDP grew in March too. Unlike recent months, there were few working days lost to strikes in the NHS, so output in the health sector is likely to have rebounded following a small drop in February.

“March’s S&P Global surveys showed all three sectors expanding for the first time in nearly two years. And the retail surveys suggest that the early Easter may have boosted sales.

“Therefore, the EY ITEM Club expects to see a healthy rebound in GDP growth in Q1 2024, making up for much of the weakness in activity across the second half of 2023.”

Mr Goodwin concluded: “The EY ITEM Club thinks momentum will continue to build over the rest of this year and into 2025. Strong wage growth and lower inflation should boost real household incomes, paving the way for a consumer-led recovery.

“Still, the lagged impact of past interest rate rises and tighter fiscal policy is likely to set a speed limit on the accelerating economy.”