UK economy contracts in January amid faltering production sector

Britain’s economy shrunk in January amid a sharp fall in the manufacturing sector, according to official figures.

The Office for National Statistics (ONS) said the economy contracted 0.1% during the month, behind expert predictions and down from a 0.4% rise in December.

Most economists had forecast gross domestic product (GDP) to rise by 0.1% in the first month of the year.

Growth

For the three months to January, GDP was estimated to have grown by 0.2%, driven by growth in the services sector, the ONS said.

Liz McKeown, the ONS director of economic statistics, said the figures continued to show “weak growth”.

She said: “The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months.

“However, services continued to grow in January led by a strong month for retail, especially food stores, as people ate and drank at home more.”