| Actual | Previous | |
|---|---|---|
| Month over Month | -0.1% | 0.4% |
| 3-Months over 3-Months | 0.2% | 0.1% |
Highlights
January 2025 real GDP slipped by 0.1 percent, mainly driven by a sharp 0.9 percent contraction in production output. This decline marks a reversal from December 2024's modest 0.4 percent GDP growth, underscoring the fragile balance between sectors. Manufacturing remains the biggest drag on output, reinforcing concerns over sustained industrial weakness.
However, on a broader scale, GDP grew by 0.2 percent over the three months to January 2025, primarily bolstered by the services sector, which expanded 0.1 percent in January. This suggests that consumer-driven activities and business services are providing a cushion against manufacturing's downturn.
Meanwhile, construction output fell for a second consecutive month (minus 0.2 percent), reflecting potential cooling in infrastructure projects. Despite this, the sector still managed 0.4 percent growth in the three months to January, hinting at underlying resilience.
Overall, the economy appears to be at a crossroadswhile short-term turbulence in production is weighing on GDP, services remain a stabilising force. The latest update leaves the UK RPI at 39 and the RPI-P at 29, meaning that economic activities remain well ahead of expectations in the UK.
However, on a broader scale, GDP grew by 0.2 percent over the three months to January 2025, primarily bolstered by the services sector, which expanded 0.1 percent in January. This suggests that consumer-driven activities and business services are providing a cushion against manufacturing's downturn.
Meanwhile, construction output fell for a second consecutive month (minus 0.2 percent), reflecting potential cooling in infrastructure projects. Despite this, the sector still managed 0.4 percent growth in the three months to January, hinting at underlying resilience.
Overall, the economy appears to be at a crossroadswhile short-term turbulence in production is weighing on GDP, services remain a stabilising force. The latest update leaves the UK RPI at 39 and the RPI-P at 29, meaning that economic activities remain well ahead of expectations in the UK.
Definition
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The monthly report is based on output data only as the income and expenditure series are not available.
Description
GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.
