By Andy Bruce and Suban Abdulla MANCHESTER, England, March 13 (Reuters) - Britain's economy stagnated unexpectedly in January after weak growth in the preceding months, according to official data, which showed a loss of momentum even before the war in Iran that is likely to be a further drag.

Surprise lack of growth in January as service sector stagnated, with falls in recruitment activity

Forecasters agreed the imminent outlook for the UK economy looked relatively promising - until President Trump launched strikes on Iran.

Britain’s Treasury chief Rachel Reeves has sought to present a rosy picture of the state of the U.K. economy, even as oil and gas prices soared in the wake of the fast-evolving Iran war that has cast a pall over the global economic outlook.

By Andy Bruce and Suban Abdulla LONDON, March 13 (Reuters) - Britain's economy stagnated unexpectedly in January and expanded weakly in preceding months, according to official data on Friday that showed only tepid growth during the lead-up to the U.

The UK economy had a lacklustre start to 2026, the latest monthly GDP figures reveal. January’s output was unchanged relative to December, held back by a sharp drop in administrative/support services and hospitality.

The pound headed for a fourth daily loss against the dollar on Friday after weak UK economic data, while concerns about the economic impact of the conflict ​in the Middle East drove investors into the greenback.

LONDON, March 4 (Reuters) - Britain's services sector grew robustly during February, according to a survey on Wednesday that also showed job cuts and price pressures persisted, a potential worry for the Bank of England ahead of this month's interest rate decision.