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UK economy failed to grow in January in blow for Starmer - The figures follow warnings that inflation could rise at the end of the year due to the US-Israeli war on Iran
The GDP in the UK stalled 0% m/m in January 2026, following a 0.1% rise in December, and compared to forecasts of a 0.2% gain. On a yearly basis, the economy remains 0.8% larger than in January 2025,
The UK economy unexpectedly failed to grow in January, with eating out in restaurants suffering in particular. The zero growth for the month was weaker than had been predicted, and followed growth of 0.1% in December.
Don't rule out UK growth picking up through the first quarter, despite a weak January. But the energy price spike risks a longer period of stagnation through 2026, as inflation rises, the jobs market keeps cooling and real wages fall back.
Surprise lack of growth in January as service sector stagnated, with falls in recruitment activity
The UK economy stagnated in January, marking a tepid start to the year even before the conflict in the Middle East triggered a global energy shock. Figures from the Office for National Statistics (ONS) fell short of economists’ expectations,
S&P Global’s PM) showed that businesses suffered from market turmoil in March as the outlook for the UK economy worsened.