The UK economy shrank unexpectedly in January, in a blow to the government ahead of its Spring Statement later this month. The economy contracted by 0.1%, which was weaker than forecast, driven mainly by a decline in the manufacturing sector.

The slowdown in January piles further pressure on Rachel Reeves and Sir Keir Starmer ahead off this month’s spring statement

GDP is estimated to have fallen 0.1% in January 2025, figures from the Office of National Statistics (ONS) show. The drop was driven by a slowdown in the production sector. We'll be bringing you the very latest updates, pictures and video on this breaking news story.

The British economy unexpectedly shrank during January, piling pressure on Treasury chief Rachel Reeves before a key statement about the state of the public finances later this month

Britain's economy unexpectedly contracted in January, extending a run of stop-start data that has dogged finance minister Rachel Reeves' attempts to ignite growth, before an update to parliament on the economic outlook.