UK Gross domestic product (GDP) is estimated to have dropped by 0.1% in January, driven by a fall in production and food service activities.

According to the latest figures from the Office for National Statistics (ONS), the GDP drop was mainly caused by a fall in the production sector, after growth of 0.4% in December 2024.

However, manufacturing of food products, beverages and tobacco was the only production sector to have seen growth in both months, up 0.07%, and over the last three months, up 0.02%.

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Real GDP is estimated to have grown by 0.2% in the three months to January 2025, compared with the three months to October 2024, mainly because of growth in the services sector.

However, the largest negative contribution in services came from accommodation and food service activities, which fell by 2.4% after growth of 0.9% in December 2024.

Food and beverage service activities fell by 2.1%, after growth of 2.0% in December 2024 and food store sales grew in January 2025 as people bought more food to consume at home, reversing the trend seen at the end of 2024.