Economic Review January 2026

UK growth outperformed expectations in late 2025, inflation is expected to cool again and markets started 2026 on a strong footing. Our January Economic Review explores the latest data on growth, prices, jobs, consumers and global markets.

• UK economic momentum strengthened into 2026, with GDP rebounding and business surveys signalling improving private sector confidence
• Inflation ticked higher in December, but economists expect the rise to fade as temporary factors unwind
• Markets delivered solid January gains despite volatility, while labour demand softened and consumer confidence edged higher