UK Economy Rebounds In January Following Dismal December

The services sector saw 0.3% growth in January
UK Gross domestic product (GDP) growth beat economist expectations to reach 0.5% in January, the biggest increase monthly output since December 2016, according to the Office for National Statistics.
This comes after a dismal end to 2018 which saw GDP growth at -0.4% in December and just 0.2% in November, while rolling three-month growth remained subdued at 0.2%.
The services sector saw 0.3% growth in January, with output in IT (1.7% growth), wholesale and retail (1.4% growth) all increasing for the month.
Meanwhile, the largest negative contributor to growth within services was professional, scientific and technical activities, which contracted by 1.3%.
The production and manufacturing sectors were also positive contributors at 0.6% and 0.8% respectively, while construction saw the biggest turnaround, with 2.8% growth following 2.8% negative growth the previous month. However, agriculture was the only industry to see negative growth in January, at -1.3%.
But over the three months to January, the services sector was the main, and the only positive, contributor of GDP growth, at 0.38 percentage points (0.5% growth).
Despite a positive start to 2019, the production and construction sectors had negative contributions to GDP growth between November and January, contracting by 0.8% and 0.6% respectively.
UK GDP growth drops to weakest level since 2012 as Brexit uncertainty weighs
The UK economy has slowed on a rolling three-month basis as the 29 March Brexit deadline moves closer, with consumers and businesses both feeling uncertain on which way the impending decision will go.
Head of GDP at the ONS, Rob Kent-Smith, said: "Across the latest three months, growth remained weak with falls in manufacture of metal products, cars and construction repair work all dampening economic growth.
"These were offset by strong performances in wholesale, IT and health services. This sluggish growth came despite the economy bouncing back from a weak December."
What Advisers Misunderstand About Protection
Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more
Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines
This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more
Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability
Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more
Gyrostat February Outlook: Stewardship As Risk Reprices
This monthly outlook examines how financial markets are pricing risk, rather than attempting to forecast ... Read more
Gyrostat Capital Management: Why Risk Management Is Not About Predicting Risk
Why Risk Management is Not About Predicting Risk Financial markets reward confidence, but they punish certai... Read more
Gyrostat January Outlook: Calm At Multiyear Extremes
This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. Its p... Read more