UK Economy Contracts 0.1% in January, Raising Concerns Over Growth

The unexpected decline in GDP highlights manufacturing struggles and global uncertainties ahead of Rachel Reeves's Spring Statement.

The UK's GDP fell by 0.1% in January, contrary to economists' predictions of slight growth, following a 0.4% increase in December.
The manufacturing sector saw a significant 1.1% decline, alongside contractions in construction and production, while services grew by a modest 0.1%.
Chancellor Rachel Reeves faces mounting pressure as weak growth and rising borrowing costs may necessitate spending cuts in her upcoming Spring Statement on March 26.
Global trade uncertainties, including tariffs introduced by President Donald Trump, and domestic tax increases are compounding economic challenges for businesses and consumers.
Analysts warn that the UK economy's sluggish performance, coupled with high inflation and cautious private sector investment, risks prolonged stagnation.