UK economic growth stalled at the start of the year, with GDP showing no expansion in January, falling short of expectations for a modest 0.2% mom rise. Sector data showed a mixed picture beneath the headline reading. Services output, which accounts for the largest share of the UK economy, was flat during the month. Production declined slightly by -0.1%
Construction posted 0.2% mom growth, but the sector remains under sustained pressure following a prolonged period of contraction driven by high borrowing costs and subdued investment.
Looking at the broader trend, the UK economy still managed a modest expansion of 0.2% in the three months to January, an improvement from the 0.1% growth recorded in the three months to December. Services output rose by 0.2% over the period, while production delivered stronger growth of 1.3%. However, construction was a significant drag, contracting by -2.0% over the same period.
