The United Kingdom’s economic system showed an unexpected decline in January.
The gross domestic product (GDP) of the mentioned country for the specified period fell by 0.1% on a monthly basis. The relevant information was published last Friday, March 14, by the Office for National Statistics. It was noted that the main factor impacting the January result was a contraction in the production sector.
At the same time, experts interviewed by the media predicted that the United Kingdom’s economic system would show growth of 0.1% in January.
Against the background of the publication of data on the dynamic of UK GDP, the pound sterling fell by about 0.15% against the dollar to trade at $1.293. At the same time, the pound sterling was flat against the euro.
Long-term government borrowing costs, which spiked to multi-decade highs earlier this year, increased. The yield on 20-year UK government bonds, known as gilts, added 2 basis points. The 30-year gilt yields were up by 4 basis points.
Services output in January showed an increase of 0.1% on a monthly basis. In December, this indicator rose by 0.4%. Production output in January fell by 0.9% month-on-month. In December, this indicator showed an increase, which amounted to 0.5%. Monthly construction output in January fell by 0.2% on a monthly basis. In December, this indicator showed a similar rate of downward dynamic.
In the fourth quarter of 2024, the United Kingdom’s economy grew by 0.1%. It is worth noting that this indicator exceeded preliminary expectations.
