The UK economy recorded zero percent growth in January, missing forecasts of 0.2 percent growth as it failed to recover from uncertainty surrounding Chancellor Rachel Reeves's autumn budget and faced headwinds from rising energy prices tied to Middle East conflict. The weak figures, which showed declines in recruitment and hospitality sectors, have dashed hopes for a near-term interest rate cut and raised recession concerns as higher oil and gas prices threaten to drive up inflation and squeeze consumer spending.
Otto Beta
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The UK economy recorded zero percent growth in January, missing forecasts of 0.2 percent growth as it failed to recover from uncertainty surrounding Chancellor Rachel Reeves's autumn budget and faced headwinds from rising energy prices tied to Middle East conflict. The weak figures, which showed declines in recruitment and hospitality sectors, have dashed hopes for a near-term interest rate cut and raised recession concerns as higher oil and gas prices threaten to drive up inflation and squeeze consumer spending.