In January 2025, the UK experienced a 0.1% decrease in real GDP, largely due to a contraction in the production sector, following a growth of 0.4% in December 2024. Despite this monthly decline, real GDP showed a 0.2% increase over the three months leading to January 2025, driven by the services sector. Sector indicators revealed a slight uptick in services output and a decline in production and construction, raising concerns among experts about potential long-term economic downturn without intervention, especially with the Chancellor's forthcoming fiscal policies.
This, without a doubt, is terrible news for the Chancellor ahead of her tax-grabbing raid on British business next month and the small matter of her Spring Statement on the 26th, when she will have to face the music.
The idea that Britain's economy is powering ahead is more wishful thinking than economic reality, as the country struggles to move beyond stagnation with weak growth and waning business confidence.
The data reveals a notable divergence across industries, with the production sector showing clear signs of strain, which could be the start of a protracted downturn without policy intervention.
However the UK economy cannot afford complacency, and the real reckoning is expected in April.
Collection
[
|
...
]