The British economy unexpectedly shrank during January, piling pressure on Treasury chief Rachel Reeves before a key statement about the state of the public finances later this month.

The UK economy shrank unexpectedly in January, in a blow to the government ahead of its Spring Statement later this month. The economy contracted by 0.1%, which was weaker than forecast, driven mainly by a decline in the manufacturing sector.

Britain's economy unexpectedly shrank in January, official data showed Friday, piling more pressure on the Labour government ahead of its Spring Statement on the economy.