UK Economy Contracts Unexpectedly On Weaker Production

RTTNews | vor 109 Tagen

(RTTNews) - The UK economy logged an unexpected contraction at the start of the year on a sharp fall in production, official data revealed on Friday.

Gross domestic product shrank 0.1 percent on a monthly basis in January, following a growth of 0.4 percent in December, the Office for National Statistics reported. GDP was expected to grow 0.1 percent. The largest contributor to the fall was industrial production, which fell 0.9 percent reversing a 0.5 percent gain in December. A similar sharp fall was last reported in April 2024.

Manufacturing output slid 1.1 percent, in contrast to the 0.7 percent increase in the previous month. At the same time, construction output was down 0.2 percent.

Partially offsetting these falls, services output edged up 0.1 percent. But this was weaker than the 0.4 percent expansion seen in December.

In the three months to January, real GDP moved up 0.2 percent from the three months to October. Compared to last year, GDP growth was 1.2 percent.

On a yearly basis, GDP grew 1.0 percent in January, weaker than the forecast of 1.2 percent. Capital Economics economist Paul Dales said the monthly fall in real GDP highlights the weakness of the economy before the full effects of the rise in business taxes and the uncertain global backdrop is felt.

Disappointing GDP data came ahead of the Chancellor's Spring Statement, which is due on March 26. The Office for Budget Responsibility will release the government spending plans alongside the Spring Statement.

Tags: GBP

UK House Price Inflation Softens In June

UK house prices logged a slower growth in June reflecting weaker demand after the increase in stamp duty at the start of April, data from the Nationwide Building Society showed on Tuesday. House prices advanced 2.1 percent year-on-year in June, slower than the 3.5 percent increase seen in May. House price growth was expected to moderate to 3.3 percent.

RTTNews | vor 1Std 21 Minuten

UK Mortgage Approvals Rise For First Time This Year

UK mortgage approvals increased for the first time so far this year in May, suggesting an improvement in housing market activity, figures from the Bank of England showed Monday. The net mortgage approvals for house purchases that indicate future borrowing rose by more-than-expected 2,400 to 63,000 in May. This was the first increase since December 2024.

RTTNews | vor 20Std 7 Minuten

UK GDP Growth Confirmed At 0.7%

The UK economy expanded at a stronger pace in the first quarter as previously estimated on robust services and industrial production, revised data from the Office for National Statistics showed on Monday. Real gross domestic product grew 0.7 percent, unrevised from the first estimate. This followed 0.1 percent expansion in the fourth quarter and marked the fastest growth since the first quarter.

RTTNews | vor 23Std 18 Minuten

BoE's Greene Seeks Cautious Approach On Concerns Over High Inflation, Uncertainty

The Bank of England must have a prudent approach to reducing interest rates as the U.K. inflation may remain high for a longer time than expected rather than a short-term spike, and also due to risks on the global front including fluctuations in oil prices in the backdrop of the ongoing Middle East conflict, policymaker Megan Greene said on Tuesday.

RTTNews | vor 6 Tagen

UK Private Sector Grows At Fastest Pace In 3 Months

The UK private sector output picked up at the strongest pace in three months in June after business volume returned to growth, flash survey results from S&P Global showed on Monday. The flash composite output index registered 50.7 in June, up from 50.3 in May. The reading was above the crucial 50.0 no-change value for the second straight month.

RTTNews | vor 7 Tagen

UK Retail Sales Fall Most Since Late 2023; Consumer Confidence Improves

UK retail sales declined more than expected in May as food store sales declined sharply after good weather boosted sales in April, the Office for National Statistics reported Friday. Retail sales fell 2.7 percent on a monthly basis in May, in contrast to the revised 1.3 percent increase in April. Sales were forecast to drop 0.5 percent.

RTTNews | vor 10 Tagen

Bank Of England Holds Rate Steady On Higher Inflation

The Bank of England maintained interest rates unchanged on Thursday as inflation in the U.K. has remained persistently above the target and geopolitical tensions escalated, raising the upside risks to inflation. The BoE Monetary Policy Committee, led by Governor Andrew Bailey, voted 6-3 to hold the Bank Rate at 4.25 percent. Three members preferred to reduce the rate by 25 basis points.

RTTNews | vor 11 Tagen

UK Inflation Slows Slightly In May

UK consumer price inflation softened in May as the slowdown in transportation costs was largely offset by the rise in food prices and reinforced expectations that the Bank of England will maintain the interest rate steady this week. The consumer price index registered an annual increase of 3.4 percent, slightly slower than the 3.5 percent rise seen in April, the Office for National Statistics said

RTTNews | vor 12 Tagen

EURUSD	1.17858	GBPUSD	1.37607	AUDUSD	0.65848
USDJPY	143.032	USDCAD	1.35979	USDCHF	0.79029

Advertisement

UK Economy Contracts Unexpectedly On Weaker Production