The British economy unexpectedly shrank during January, piling pressure on Treasury chief Rachel Reeves before a key statement about the state of the public finances later this month

The U.K.'s economy unexpectedly shrank by 0.1% month-on-month in January, official figures showed on Friday. Britain's Office for National Statistics said the fall was mainly due to a contraction in the production sector.

Sterling lost some ground versus the dollar on Friday after data painted a grim picture of the British economy, and it softened against the euro as prospects of a German debt deal lifted the shared European currency.

Britain's economy unexpectedly shrank in January, official data showed Friday, piling more pressure on the Labour government ahead of its Spring Statement on the economy. The data provides a fresh blow to the government and Prime Minister Keir Starmer,

The Office for National Statistics (ONS) said the economy contracted 0.1% during the month, behind expert predictions and down from a 0.4% rise in December. | ITV National News

The slowdown in January piles further pressure on Rachel Reeves and Sir Keir Starmer ahead off this month’s spring statement

The UK economy unexpectedly contracted by 0.1% in January marking the latest blow to Chancellor Rachel Reeves.

Britain's economy unexpectedly contracted in January, extending a run of stop-start data that has dogged finance minister Rachel Reeves' attempts to ignite growth, before an update to parliament on the economic outlook.