The U.K. economy flatlined in January as growth continued to slow even before the U.S.-Iran war brought about a global energy price shock.
Preliminary figures published on Friday fell short of the 0.2% month-on-month gross domestic product growth forecast by economists polled by Reuters. The economy grew by 0.1% in December.
In the final quarter of 2025, the U.K. economy grew by a weaker-than-expected 0.1%.
Britain’s Office for National Statistics said the dominant services sector showed no growth in January, while production contracted by 0.1% and construction grew by 0.2%.
In her annual Spring Statement delivered earlier this month, U.K. Finance Minister Rachel Reeves touted growth as a sign of the government having “the right economic plan for the country.”
