UK economy unexpectedly flatlined in January, official figures show

"Figures from the Office for National Statistics (ONS) showed zero growth in gross domestic product (GDP), down from an increase of 0.1% in December, as the economy failed to recover from uncertainty surrounding the chancellor Rachel Reeves's autumn budget. Falling significantly short of City predictions for growth of 0.2%."

"Oil prices rose past $100 a barrel on Thursday for a second time this week, as widespread Iranian attacks on energy facilities across the region overshadowed a vast release of government reserves. Analysts said that if sustained, higher energy prices would drive up inflation, dashing hopes of an interest rate cut from the Bank of England next week."

"Experts said sharply rising living costs, alongside heightened geopolitical uncertainty, would damage consumer spending and business confidence, with the potential to trigger a recession if the conflict was sustained."

The UK economy showed zero growth in January, falling short of City predictions for 0.2% growth and declining from December's 0.1% increase. The weak performance followed uncertainty from Chancellor Rachel Reeves's autumn budget. Simultaneously, the Middle East conflict escalated oil and gas prices past $100 per barrel, raising consumer living costs and threatening inflation. Higher energy prices could force the Bank of England to maintain or increase interest rates rather than cut them. Analysts warn that sustained price increases could damage consumer spending and business confidence, potentially triggering recession. The economy grew 1.3% in 2025, below the 1.5% forecast, amid tax uncertainty and public finance concerns.

Read at www.theguardian.com