"The UK economy started the year on the back foot and activity is expected to weaken further amid sharply rising energy prices. Government borrowing costs have risen in recent weeks and analysts now expect the Bank of England to keep interest rates higher for longer. That will be a headwind for businesses who have already seen an immediate increase in energy and other input costs."
"The zero growth for the month was weaker than had been predicted, and followed growth of 0.1% in December. The overall picture is subdued, said the Office for National Statistics, while analysts called it a disappointing start to the year."
"Our economic plan is the right one, but I know there is more to do. In an uncertain world, we are building a stronger and more secure economy by cutting the cost of living, cutting national debt and creating the conditions for growth to make all parts of the country better off."
The UK economy unexpectedly stalled in January with zero growth, marking a weaker performance than predicted and following modest growth of 0.1% in December. The Office for National Statistics described the overall economic picture as subdued. The services sector showed no growth while production fell by 0.1%, though construction grew by 0.2%. Analysts warn growth will likely remain constrained due to rising energy prices from Middle East conflict and elevated government borrowing costs. The Bank of England is expected to maintain higher interest rates longer, creating additional headwinds for businesses already facing increased energy and input costs. The government has prioritized economic growth as a key objective.
Read at www.bbc.com
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