13 Mar 2026
The UK economy unexpectedly failed to grow in January, according to the latest data from the Office for National Statistics (ONS).
The zero growth for the month was weaker than had been predicted and followed growth of 0.1% in December.
The ONS said the services sector showed no growth in January, while production fell by 0.1%. Meanwhile the construction sector grew by 0.2%.
In the three months to January, a less volatile measure in comparison to the monthly numbers, GDP grew by 0.2% - up from 0.1% in the three months to December.
Alpesh Paleja, Deputy Chief Economist at the Confederation of British Industry (CBI), said: 'While the economy managed to eke out modest growth in the three months to January, underlying momentum remained weak. The broader picture is still one of an economy treading water since the middle of last year.
'However, this data is already backward-looking. The near-term outlook is now dominated by heightened uncertainty surrounding conflict in the Middle East. Energy prices have risen sharply and, if sustained, will only intensify the by now familiar mix of high inflation and weak growth.
'Oil and gas price shocks risk placing renewed strain on businesses and households, and government will need to respond with agility to the evolving conflict. With firms already squeezed by high industrial energy costs, this moment reinforces the need to cut the cost of doing business – including finding appropriate landing zones for the Employment Rights Act and simplifying the tax system to support growth.'