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UK Economy Contracts by 0.1% in January Amid Manufacturing and Construction Slowdown

by Geraldine S.
03/14/2025
in Economic Indicators, Importing & Exporting

The UK economy recorded a 0.1% decline in January, driven by weaker performance in the manufacturing and construction sectors, according to the latest data from the Office for National Statistics (ONS).

This follows a 0.4% growth in December, with the ONS reporting that manufacturing output fell by 1.1%, while construction activity declined by 0.2%.

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Economic analysts are closely watching the upcoming Spring Statement for potential measures to stimulate growth. Investment strategist Scott Gardner noted that the economy faces challenges in gaining momentum, highlighting concerns over growth forecasts for 2025.

Meanwhile, David Morrison, senior market analyst at Trade Nation, observed a muted market reaction, with only slight fluctuations in sterling and the FTSE 100. He pointed to overnight gains in U.S. stock index futures as a contributing factor to market resilience.

Economists and policymakers are now looking ahead to the Spring Statement and future economic indicators for insights into the UK’s growth trajectory.

Your source for supply chain logistics news updates: The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com.

#UKEconomy #GDPReport #ManufacturingTrends #EconomicOutlook #FinancialMarkets


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