Tag: United Kingdom

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.

British businesses extended an early 2026 recovery in February and consumers started the year confidently, data showed on Friday, although companies are still cutting jobs.

U.K. retail sales surged in January, eclipsing the previous month’s hefty jump, suggesting consumers retained a degree of confidence into the new year.

The United Kingdom (UK) headline Consumer Price Index (CPI) rose 3.0% over the year in January, compared to a rise of 3.4% in December, the data released by the Office for National Statistics (ONS) showed on Wednesday.

Unemployment has risen to its highest level for five years and wage growth has slowed again, according to official figures, with the jobless rate among young people at its worst level for more than a decade.

The U.K. economy grew a meager 0.1% in the fourth quarter, according to preliminary figures from the Office for National Statistics on Thursday.

Keir Starmer’s communications chief, Tim Allan, resigned on Monday, saying he was making way for a new team to be built to support the British leader who is under fire over his decision to appoint Peter Mandelson as ambassador to the United States.

Bank of England policymakers have left interest rates unchanged at 3.75%, but indicated that lower inflation as a result of cost-of-living measures in Rachel Reeves’s budget should pave the way for cuts in the months ahead.

British technology and financial services firms drove the fastest private-sector growth in almost two years, according to a closely watched survey that showed bosses approving new projects after the budget.

British retail sales rose unexpectedly last month, helped by strong online shopping, according to data published on Friday which added to signs of a pickup in the economy after finance minister Rachel Reeves’ budget.

Britain and China will aim to revive a “golden era” business dialogue when Prime Minister Keir Starmer visits Beijing next week, three sources familiar with the initiative said, with top company executives from both sides invited to participate.

The UK’s annual inflation rate unexpectedly picked up at the end of 2025, reinforcing market forecasts that the Bank of England would not cut its key interest rate at its upcoming monetary policy meeting.

The U.K. unemployment rate remained at an elevated rate in November while wage growth retreated, data showed Tuesday, suggesting further interest rate cuts by the Bank of England are likely as the new year progresses.

The U.K. economy grew by a more-than-expected 0.3% in November, data from the Office for National Statistics (ONS) showed Thursday.

The Bank of England voted narrowly to cut interest rates on Thursday, in its last monetary policy move of 2025.

Britain and the United States are poised to agree to zero tariffs on pharmaceutical products, with an announcement due at the White House on Monday, according to two sources familiar with the matter.

Shares in British betting and gaming firms tumbled on Wednesday after the Office for Budget Responsibility said finance minister Rachel Reeves is set to increase gambling duties in her budget, raising fears of steep costs restricting industry growth.

British Finance Minister Rachel Reeves announced on Wednesday a reduction in the annual tax-free limit for cash investments in Individual Savings Accounts (ISAs) from £20,000 to £12,000 ($15,800), effective from 2027.

The U.K.’s inflation rate cooled to 3.6% in October, marking one of the last major economic data releases ahead of the government’s Autumn Budget next week.

British inflation in August held at 3.8%, official data showed on Wednesday, the highest among major advanced economies and reinforcing expectations that the Bank of England will not cut interest rates until next year.