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UK January Growth Beats Forecast, But Pace Remains Weak

The UK economy expanded at a faster-than-expected pace in January, supported by growth in all main sectors such as manufacturing, services and constructions, but the pace of growth was lackluster amid the lingering Brexit uncertainty.

Gross domestic product grew 0.5 percent month-on-month in January after a 0.40 percent decline in December, preliminary figures from the Office for National Statistics showed on Tuesday. Economists had expected a 0.20 percent increase.

In November, GDP grew 0.2 percent monthly.

On a 3-month-on-3-month basis, GDP rose 0.20 percent in January, which was in line with economists' expectations.

"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," ONS Head of GDP Rob Kent-Smith said.

"This sluggish growth came despite the economy bouncing back from a weak December."

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by RTTNews Staff Writer

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