[ad_1]
The UK economy grew by 0.2% in the three months to January but with zero growth that month, according to official figures, as the prospects ahead are clouded by uncertainty due to the effects of the Middle East war.
Early estimates from the Office for National Statistics (ONS) pointed to better performances from industrial production and services during January, though wet weather further curbed output for construction.
It marked a slight tick up for the rolling three-month figure though it has undershot expectations among some economists that growth would strengthen markedly following the end of pre-budget speculation last November.
Iran latest: US to ease Russia oil sanctions to help bring down price
The ONS director of economic statistics, Liz McKeown, said of the data: “The overall picture remains subdued, with no growth in the latest month.”
The outlook for this year has been called into deeper question ever since the US and Israel attacked Iran at the end of February.
Economists fear a new wave of energy-led inflation in the UK and across the world.
Oil and natural gas costs have spiked in response to the growing disruption to production and deliveries caused by Iranian attacks on Gulf nations’ energy infrastructure.
The regime has effectively closed the Strait of Hormuz shipping lane, taking a fifth of global supplies away from the market.
Brent crude oil costs have risen by more than 50% this month while wholesale natural gas prices for UK delivery are up by 70%.
The impact has been immediate – with a leap in fuel costs set to be the first war-related drag on the economy – but the full effects will be staggered.
Price hikes were seen at…
[ad_2]
