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.

Britain's economic output contracted unexpectedly by 0.1% in January, pulled down by a sharp drop in manufacturing output compared with December, data from the Office for National Statistics showed on Friday.

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

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. Gross domestic product contracted 0.1 percent in the month after GDP rose 0.4 percent in December, the Office for National Statistics (ONS) said in a statement.

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