UK Economy Flat in January, Data Shows

The United Kingdom's economy showed no growth in January, official data revealed Friday, dealing a setback to the government's efforts to boost activity amid rising global tensions from the recent Middle East conflict.

The Office for National Statistics reported that gross domestic product remained flat for the month, falling short of economists' expectations for a 0.2 percent increase. This stagnation followed modest 0.1 percent growth in December and the final quarter of 2025, painting a picture of subdued performance at the start of the year. The figures, released in London, do not yet reflect the economic fallout from the U.S. and Israeli military actions against Iran that began on February 28, which have driven oil prices above $100 a barrel and sparked concerns over higher energy costs for British households and businesses.

Sector breakdowns highlighted uneven results. The services industry, which accounts for more than 80 percent of GDP, recorded no change, while manufacturing output rose slightly by 0.1 percent and construction expanded by 0.2 percent. Housebuilding faced particular challenges, with private new work declining 5.6 percent, the sharpest drop since the...