Closing post
Time to wrap up….
The UK economy unexpectedly flatlined in January, stoking concerns over growth amid the global energy price shock triggered by the US-Israel war on Iran.
Figures from the Office for National Statistics (ONS) showed 0% growth in gross domestic product (GDP), down from an increase of 0.1% in December, as the economy failed to recover from uncertainty surrounding the chancellor Rachel Reeves’s autumn budget.
Falling significantly short of City predictions for growth of 0.2%, the figures came as the UK and other countries faced a potentially severe economic hit as the Middle East conflict drove up oil and gas prices, hitting consumers with higher living costs.
The pound fell against the US dollar after the figures were released, to a three-month low.
In a fresh blow to the government’s growth ambitions after a challenging start to the year, output in the service sector flatlined amid falls in recruitment activity and the hospitality sector.
One eoconomist warned that the oil crisis could drive the UK economy into a recession this year, although others were less pessimistic.
There was gloomy GDP news from the US too, where the economy only grew half as fast as initially estimated in the last quarter of 2025.
US GDP rose at an annual rate of 0.7% in October-December 2025, new data from the US Bureau of Economic Analysis shows. That’s the equivalent of less than 0.2% growth in the quarter.
The trade body for the UK’s petrol station industry has got into a row with the government after claiming the “inflammatory language” used by ministers to describe rising pump prices may have incited abuse against forecourt staff.
The Petrol Retailers Association (PRA) said ministers had for several days suggested that forecourts might be “price gouging” and “ripping off” motorists as global oil markets have surged in response to the war in Iran.
Owners of SUVs could face charges to drive in London, after the mayor and transport authorities said they were reviewing the increased danger posed by larger, heavier cars…..
…. And London mayor Sadiq Khan has said he would be encouraging the Met to abandon his armoured car in favour of a smaller vehicle.
Ed Miliband has unveiled plans that could make it easier to build nuclear power plants closer to homes and on sensitive nature sites, as he attempts to speed up the development of energy infrastructure.
Updated
Benchmark UK government bond prices are weakening this afternoon, pushing up the yield (or interest rate) on the debt.
The 10-year gilt yield is up 5 basis points (0.05 percentage points) today, on track for its highest daily close since January 2025, Reuters points out.
Updated
