UK economy shrinks as GDP falls by 0.1% – what it means for your money
BRITAIN'S economy fell 0.1% in January, caused by a decrease in the production sector, according to official figures.
The latest figures from the Office for National Statistics (ONS) reveal Gross Domestic Product (DGP) fell marginally in January.
GDP is one of the main indicators used to measure the performance of a country's economy.
When it goes up, it means the economy is doing well, when it falls it means the economy has shrunk.
Liz McKeown, Director of Economic Statistics at the ONS, said the overall economic picture continues "to be of weak growth".
She said: "The economy shrank a little in January but grew in the latest three months as a whole.
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"The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months."
But she added that services and retail saw strong performance in the first month of the year.
She said: "Services continued to grow in January led by a strong month for retail, especially food stores, as people at and drank at home more."
Mel Stride MP, Shadow Chancellor of the Exchequer, said the figures show this government is a "growth killer".
She said: “It is no surprise that growth is down again, following near no growth in the last three months of 2024.
"After consistently talking Britain down, raising taxes to record highs and crushing business with their extreme employment legislation this government is a growth killer.
“Labour inherited the fastest growing economy in the G7 but since they arrived business confidence has collapsed and jobs are being lost."
She added that the Chancellor has just a fortnight until the Spring Statement and must rethink her policies.
She said: “The Chancellor has 12-days until her emergency Budget – she must think again or hardworking people will continue to pay the price of a Labour government without any business experience.”
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