The UK economy unexpectedly contracted by 0.1% in January, primarily due to a slowdown in manufacturing. This dip, following a 0.4% growth in December, poses challenges to the government, which aims to boost economic growth ahead of the Spring Statement. Construction and oil sectors also performed poorly, although retail sales in food shops offered some offset as consumers adjusted their spending habits. Experts have cautioned about sluggish growth and the impact of global uncertainties, suggesting potential tight budgets in future government spending plans.
The UK economy shrank unexpectedly by 0.1% in January, impacted by a slowdown in manufacturing, signaling challenges ahead for government growth initiatives.
Liz McKeown notes that while January showed a slight contraction, the economy grew by 0.2% in the three months leading up to January, indicating overall weak growth.
Chancellor Rachel Reeves highlights global changes affecting the UK economy and expresses a commitment to accelerate measures aimed at stimulating economic growth.
Yael Selfin from KPMG UK emphasizes that the uncertainty stemming from Trump tariffs is causing businesses to hesitate on investments, potentially leading to sluggish growth.
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