UK
economy shrinks unexpectedly in blow to Rachel Reeves
ONS data
showing 0.1% fall in GDP in January comes less than two weeks before
chancellor’s spring statement
Phillip
Inman
Fri 14 Mar
2025 08.01 CET
https://www.theguardian.com/business/2025/mar/14/uk-economy-shrinks-blow-to-rachel-reeves
The UK
economy contracted by 0.1% in January, dealing a blow to Rachel Reeves before
the spring statement later this month.
In a
surprise to City economists, who expected 0.1% growth in January, the Office
for National Statistics data showed the services sector failed to offset a
decline in the industrial sector and maintain growth from the previous month.
Manufacturing
output fell by 1.1% in January 2025, reversing a spurt of 0.7% in December last
year. Construction was another drag on the economy after poor winter weather
held back housebuilders.
Yael Selfin,
the chief economist at KPMG UK, said: “The UK economy starts the year on the
back foot as global uncertainty casts a shadow on the outlook.”
In December
the economy expanded by 0.4%, helping the last quarter of the year to register
a 0.1% rise and avoid two quarters of zero growth.
The Bank of
England’s rate-setting monetary policy committee is forecast to be unmoved by
the latest figures when it meets next week. Financial markets expect interest
rates will be kept on hold at 4.5%.
The National
Institute of Economic and Social Research has forecast that the economy will
grow by 0.4% in the first quarter of 2025, much higher than the Bank, which has
estimated growth will be limited to only 0.1%.
Sem comentários:
Enviar um comentário