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The UK economy unexpectedly decreased 0.1% in January.

The UK economy unexpectedly decreased 0.1% in January.

 



Tom espiner

BBC Business Reporter

Getty image

The British economy was unexpectedly reduced in January due to a blow to the government ahead of the spring statement at the end of this month.

The economy increased 0.1%, which was weaker than predictions, mainly led by the decrease in the manufacturing sector.

The government has raised growth as a core priority, but the weakness of the economy is expected to affect the decision of Minister Rachel Reeves, who wants to meet his own imposition of taxes and expenses.

Reeves said the government should go “faster and” for the economy. But the Conservative Party accused the “growth killer.”

Economists predicted that the economy would increase 0.1% in January after the growth of 0.4% in December. Monthly reading prices may be highly volatile and the ONS is estimated to have increased by 0.2% from three months to January.

But the overall picture of the UK is one of the weak growth, Liz McKeown, an ONS economic statistics director.

She said architecture, oil and gas extraction were weak a month.

But it was partially offset by retail stores, especially food stores.

As taxes rise in April, there is concern that economic growth will remain for a while.

Companies are expecting to pay more expenses for national insurance and increase the minimum wage and reduce business rates, which can affect the economy of the economy.

Companies are also facing new uncertainty over tariffs imposed by President Donald Trump, and the government is under pressure to increase defense spending.

Reeves responded to the latest growth figures, “The world has changed and we feel the result in the world.”

She said the government said, “Defense spending is the biggest increase since the Cold War.” However, this is this time because public expenditure plans are under pressure as the prime minister tries to meet its own imposition budget rules.

Last month, the Bank of British reduced the growth of British growth this year. In the spring statement at the end of this month, the Secretariat of Independence is likely to downgrade growth forecasts.

As a result, government spending led to the government's expenditure to return the government to meet the tax and spending rules.

The government is expected to cut the welfare budget significantly next week as part of this cost reduction.

Mel Stride, a conservative shadow prime minister, said that the labor government raised taxes and said, “Growth murderer.”

DAISY COOPER, a spokesman for Lib DEM Treasury, said Reeves' growth plan for growth said that the change of taxes will leave the economy that ruins small businesses.

Tax changes will be difficult '

John Dipre, the owner of Ashstead Garden Center near Surrey's EPSOM, said that the change in national insurance donations and the help of the fee is less helpful and the minimum wage will be “struck us.”

“It will be very hard,” he said. “If you actually want to support growth, you need to support small business. That's all in the UK.”

YAELSELFIN, the chief economist at KPMG UK, said that the prediction of “sluggish growth” would probably “strengthen” the wallet line in the Spring Statement.

She added that the recent reduction in the UK is a preview of some departments that some departments will press the spending plan in order to support the increase in defense spending.

Anna Leach, the chief economist of the board of directors, said that the GDP's slight rise or decline is not important for a month, but the economy is “very weak because the economy is” very weak. “

In particular, automobile manufacturers have trade uncertainty caused by Trump tariffs and “notable weaknesses” along with “cutting and changing in electric vehicle adoption goals.”

She said that the growth of the UK would not be “definitely helpful.”

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