"Worries about how the UK economy will withstand the energy crisis have ratcheted up after a highly disappointing report card showed growth stalled in January. The Office for National Statistics painted a picture of stagnation for the UK, with the mighty services sector flatlining and production contracting, with the construction sector only just eking out growth."
"Stagflation is stalking the UK economy, with inflation set to rise while stagnation settles in, with risks increasing that the economy could go into reverse. It doesn't bode well for the resilience of companies ahead, faced with escalating energy prices which are likely to see many businesses battening down the hatches, putting investment plans on hold."
"The harsh winds blowing over the global economy show little sign of calming. The FTSE 100 is set to end the week on a cautious note, with stocks on Wall Street hitting the lowest level since last November. Oil prices are staying hot, with the benchmark Brent crude hovering stubbornly above $100 a barrel as the conflict involving Iran looks increasingly intractable."
The UK economy showed no growth in January, raising concerns about its ability to withstand an emerging energy crisis. The services sector stalled while production contracted, with only the construction sector showing minimal growth. Global markets reflected weakness, with the S&P 500 falling 1.52% to its lowest level since mid-November 2025. Crude oil prices remained above $100 per barrel despite coordinated efforts to increase supply, including emergency releases by the International Energy Agency. Financial stocks suffered from Middle East conflict impacts. Stagflation risks loom as inflation rises while economic stagnation persists. Governments face pressure to address consumer pain, particularly regarding fuel price gouging at UK forecourts.
Read at London Business News | Londonlovesbusiness.com
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