The 0.1% drop has reversed the 0.4% progress in December and comes under predictions for a 0.1% improve.
This was fuelled by a slowdown in manufacturing, with manufacturing falling 0.9% month on month.
Building output additionally declined 0.2% month on month, whereas companies grew 0.1%.
These drops may point out a recession is on the playing cards, which occurs when a rustic experiences two consecutive quarters of unfavourable financial progress.
Nicholas Hyett, funding supervisor at funding service Wealth Membership, mentioned: “The slowdown has been pushed by a giant slowdown in manufacturing output – unsurprising given the very unsure outlook for exports with ever altering tariffs. Providers has slowed dramatically, significantly in sectors like lodging and meals companies which anticipate to be hit onerous by greater dwelling wage and employer nationwide insurance coverage contributions in April.
“That is the actually worrying factor about these numbers. Tariffs and elevated labour prices have been extra worries than actuality in January, the month coated by these numbers. These worries will quickly be reworking into realities. That leaves loads of room for financial progress to deteriorate additional, with far fewer catalysts to spark an financial restoration. We may very well be firstly of an extended gradual slide into recession.”
