London - Saba:
Official figures revealed that the UK economy shrank in January amid a sharp decline in the manufacturing sector, and weak oil and gas extraction and construction.
The Office for National Statistics (ONS) said on Friday that the economy shrank by 0.1% during the month, lagging experts' expectations and down from a 0.4% increase in December.
Most economists had expected gross domestic product (GDP) to rise by 0.1% in the first month of the year.
The ONS added that for the three-month period through January, GDP was estimated to have grown by 0.2%, driven by growth in the services sector.
Responding to the British economy's contraction in January, Chancellor Rachel Reeves said: "The world has changed, and we are all feeling the consequences around the world." She added: "That's why we are moving further and faster to protect our country, reform our public services, and unleash economic growth to deliver our transformation plan."
She continued: "That's why we are launching the largest sustained increase in defense spending since the Cold War, radically reshaping the British state to meet the needs of workers and their families, and tackling the obstacles to rebuilding Britain."
For her part, Liz McKeown, director of economic statistics at the Office for National Statistics, said the figures continue to show "weak growth," noting that "January's contraction was driven by a marked slowdown in manufacturing, with weaker months in oil and gas extraction and construction."
She continued: "However, services continued to grow in January, led by a strong month for retail, particularly food stores, as people ate and drank more at home."
| more of (International) |