London — Britain’s economic output contracted unexpectedly by 0.1% in January, pulled down by a sharp drop in manufacturing output compared with December, data from the Office for National Statistics showed on Friday.
A Reuters poll of economists had forecast a monthly expansion of 0.1%. While January’s drop only partially reverses a 0.4% expansion in December, the reading nonetheless represents a disappointment for finance minister Rachel Reeves, whose number one mission is to get the economy growing.
Over the three months to January, the economy expanded by 0.2%, slightly weaker than the 0.3% Reuters poll consensus.
Manufacturing output slumped by 1.1% in January alone, with the metals and pharmaceutical sectors performing especially poorly, while the broader industrial sector was also hurt by a fall in oil and gas extraction.
Output in the dominant services sector grew by 0.1%, marking the third straight month-on-month expansion.
Construction output slipped by 0.2%, with the ONS citing anecdotal evidence from companies of stormy weather hitting construction activity.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.