UK economy sputters in January, underlining Reeves' growth challenge

Business and FinanceBusiness and Finance

Fri, March 14, 2025

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UK economy sputters in January, underlining Reeves' growth challenge

^{Published on 2025-03-14 17:41:17 - Reuters}

Britain's economy unexpectedly contracted in January, extending a run of stop-start data that has dogged finance minister Rachel Reeves' attempts to ignite growth, before an update to parliament on the economic outlook.

The UK economy experienced a slight contraction in January, with a 0.3% decline in GDP following a 0.5% drop in December, highlighting the challenges faced by the new Labour government under Chancellor Rachel Reeves to stimulate growth. This downturn was influenced by widespread strikes, particularly in the public sector, and unusually mild weather reducing energy consumption. Despite these setbacks, there are signs of potential recovery with business surveys indicating growth in February, and the Bank of England forecasting a 0.25% increase in GDP for the first quarter. Reeves has acknowledged the need for economic growth, emphasizing that it's crucial for funding public services and addressing the cost-of-living crisis, while also noting that the government's plans will take time to implement and show results.

Read the Full Reuters Article at:
[ https://www.msn.com/en-gb/money/other/uk-economy-sputters-in-january-underlining-reeves-growth-challenge/ar-AA1AUBJj ]

N@N

UK economy sputters in January, underlining Reeves' growth challenge