The UK economy failed to grow in January, with the zero growth for the month weaker than had been predicted, according to the Office for National Statistics (ONS).
Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “The data shows the UK economy remains stuck in a worrying low growth trap. 
“A three-month GDP average of just 0.2%, and no growth (0%) in January itself, reinforces the real concerns we’re hearing from the businesses we represent. Firms are low on confidence, struggling to invest and holding back on recruitment.
“The situation is likely to get worse before it gets better. Recent global uncertainty, including US tariffs and the Middle East conflict, have upended the economic outlook.
“We’re forecasting GDP growth of just 1% for 2026, with the current turmoil pushing up inflation and making further interest rate cuts unlikely.
“The UK cannot afford to drift along with weak growth. Government should use the months ahead to create the conditions for businesses to invest, trade and grow, with a particular focus on how AI technology can transform productivity.”
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