British economy stagnates in January 2026: ONS-Xinhua

British economy stagnates in January 2026: ONS

Source: Xinhua| 2026-03-13 23:01:00|Editor: huaxia

LONDON, March 13 (Xinhua) -- Britain's real gross domestic product (GDP) registered zero growth in January 2026, bucking the growth trend seen in December 2025 (0.1 percent) and in November 2025 (0.2 percent), estimates from the Office for National Statistics (ONS) showed Friday.

Specifically, services output showed no growth in January, and production output fell by 0.1 percent. However, the figure for construction increased by 0.2 percent.

In the three months to January 2026, real GDP rose 0.2 percent compared with the three months to October 2025, the data also showed.

Liz McKeown, director of economic statistics at the ONS, said growth had ticked up slightly in the last three months. This partly reflects the recovery of car manufacturing, and the wholesale industry continued to rebound from a weak summer, she said, adding, "However, the overall picture remains subdued, with no growth in the latest month."

"Today's data shows the UK economy remains stuck in a worrying low growth trap," said Stuart Morrison, research manager at the British Chambers of Commerce (BCC). He noted that firms are low on confidence, struggling to invest and holding back on recruitment.

Britain's economic growth is forecast to expand by 1.1 percent in 2026, down from a 1.4 percent projection made in November, the independent Office for Budget Responsibility said in early March, pointing to a weaker near-term outlook.

Morrison said: "The situation is likely to get worse before it gets better. Recent global uncertainty, including U.S. tariffs and the Middle East conflict, has upended the economic outlook."

The BCC forecasts that the GDP growth in Britain will be just 1 percent for 2026, with the current turmoil pushing up inflation and making further interest rate cuts unlikely, he noted.

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