The UK economy unexpectedly stalled at the start of the year, intensifying concerns that escalating geopolitical tensions and rising energy prices could derail growth in 2026.
New figures from the Office for National Statistics (ONS) show that gross domestic product (GDP) recorded no growth in January, following a modest expansion of 0.1 per cent in December. Economists had forecast a stronger start to the year, predicting a monthly increase of around 0.2 per cent.
The latest data suggests that the UK economy entered the year with little momentum, even before the economic impact of the escalating conflict between the United States, Israel and Iran began to filter through global markets.
On a rolling quarterly basis, the economy grew by just 0.2 per cent in the three months to January, only slightly stronger than the 0.1 per cent recorded in the previous quarter and below analysts’ expectations of 0.3 per cent.
The figures reinforce growing fears among economists that the UK’s fragile recovery could stall further as rising oil and gas prices feed through into higher inflation and weaker consumer spending.
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