UK economy shrank by 0.1% in January – Latest News Update

The UK economy shrank by 0.1% in January, according to the latest official figures.

A slowdown in manufacturing was one of the main reasons for the dip, the Office for National Statistics (ONS) said.

The performance was weaker than expected, with most economists having predicted the economy to have grown in the month.

The UK government has repeatedly said its number one priority is to boost UK economic growth.

Liz McKeown, ONS director of economic statistics, said: “The economy shrank a little in January but grew in the latest three months as a whole, with the overall picture continuing to be of weak growth.”

Construction and oil and gas extraction had a “weak month”, she said.

But this was partially offset by retail, particularly food shops, “as people ate and drank at home more”, she said.