GDP XXX as UK economy prepares for upcoming tax hikes

The UK economy underperformed expectations in January. According to the latest set of gross domestic product (GDP) figures published by the Office for National Statistics (ONS), the economy shrank by 0.1 per cent in January.

Over the three months to the end of January, the economy grew by 0.2 per cent.

Economists had predicted growth of 0.1 per cent for the first month of the year.

The ONS said the output in services sector grew 0.1 per cent in the month, following growth of 0.4 per cent in December. Production fell by 0.9 per cent following growth of 0.5 per cent in December and construction output fell 0.2 per cent, following a decline of 0.2 per cent in December.

The UK economy has recorded a mixed performance in the months after Labour’s Autumn Budget, raising fears that the Chancellor’s plans have contributed to economic stagnation.

Gross domestic product (GDP) increased 0.1 per cent in November, according to the Office for National Statistics (ONS), which was slower than the 0.2 per cent expansion predicted by City experts.

However, GDP rose by 0.4 per cent in December, while economists had expected to see the economy shrink 0.1 per cent.

This is a developing story