UK monthly GDP data for January

The United Kingdom’s economy unexpectedly reduced 0.1% month by month in January, Official figures showed on Friday.

The Great Britain National Statistics Office said the fall was mainly due to a contraction in the production sector.

Economists surveyed by Reuters expected the country’s GDP to grow by 0.1%.

At 7:35 am in London, shortly after the data launch, the British pound It was reduced by around 0.15% against the dollar to operate at $ 1,293. Sterling was flat against the euro.

Meanwhile, long -term government indebtedness costs, which On the maximum of multiple decades earlier this yearpink. The performance of Government Bonds of the United Kingdom of 20 years – known as gold – added 2 basic points, while 30 -year -old golden yields They were up for 4 basic points.

The production of services collected 0.1% month by month in January, but marked a slowdown in the increase of 0.4% of December. Production production decreased by 0.9% in the month, after registering a 0.5% increase in the previous month. Meanwhile, the monthly production of construction fell into another 0.2% in January, after losing 0.2% in December.

The United Kingdom’s economy grew 0.1% in the fourth quarter, exceeding expectations, ONS data Shown last month. He FLATINED in the third quarter.

The monthly GDP data has been marked since then, with a contraction of 0.1% in October, An expansion of 0.1% in November and an expansion of 0.4% month by month in December thanks to the growth of services and production.

The launch of the GDP on Friday will be the last impression of data before the “Spring Declaration” of the United Kingdom Treasury on March 26, when Foreign Minister Rachel Reeves presents an update on her plans for the British economy.

The declaration is published together with the economic forecasts of the Office for Budget Responsibility, the Independent Economic and Fiscal Pronosticator of the United Kingdom, which gives its evaluation on the probable impact of government expenses and expenses.

There have been concerns that Treasury tax plansThat past falls were established and that the tax burden will increase for British companies, could weigh on investment, jobs and growth. Reeves has defended tax increases, saying that they are a unique and necessary measure to boost investment in public services.

The Bank of England made its first interest rate cut of the year in February, which indicates more cuts, since it would reduce half of the United Kingdom’s growth forecast by 2025 from 1.5% to 0.75%.

The markets expect that the Bank of England holds stable rates at 4.5% at its meeting of the Monetary Policy Committee next week, according to LSE data on Friday.

The Central Bank said it would judge how to balance the need to boost the growth with the inflationary risk raised by the commercial rates of the president of the United States, Donald Trump. The United Kingdom has not been specifically directed so far, but its exports of steel and aluminum to the US will be located in the Trump blanket, 25% of import tariffs on metals.

In a note on Friday, Paul Dales, chief economist of the United Kingdom in Capital Economics, said the data highlighted the weakness in the British economy before the impact of commercial taxes and geopolitical uncertainty would have incorporated.

“Most of the weakness is just a recovery of the surprisingly strong increase of 0.4% m/m in GDP in December,” he said. “In other words, December figures made the economy stronger than it really was and January caused it to seem a little weaker. The truth is probably that the underlying growth rhythm is a bit above zero.”

He added that although the tariffs of the president of the United States, Donald Trump, about steel and aluminum had only this week comes into forceThey could already have impacted the economy of the United Kingdom.

“The fall of 1.1% m/m in manufacturing production was partly due to a 3.3% m/m in metal production,” he explained. “It is possibly related (with tariffs), since they have been anticipated for a while.”

Speaking in Parliament on Wednesday, Great Britain’s Prime Minister Keir Starmer, They told politicians I hope that the United Kingdom could still evade Trump’s protectionist commercial policies.

“I am disappointed to see global tariffs in relation to steel and aluminum, but we will adopt a pragmatic approach,” he said. “We are negotiating an economic agreement that covers and will include tariffs if we succeed, but we will keep all the options on the table.”