The United Kingdom’s economy failed to grow in January as households reduced spending on discretionary activities such as dining out, highlighting ongoing pressure on consumer finances.

Data released by the Office for National Statistics showed that gross domestic product recorded zero growth during the month, falling short of expectations that the economy would expand by around 0.2 percent.

The flat reading followed a modest increase of 0.1 percent in December, indicating a weak start to the year for Britain’s economic momentum.

The slowdown was driven largely by weaker activity in the services sector, which accounts for roughly four-fifths of the UK economy.

Within that sector, food and drink services experienced a sharp contraction as consumers cut back on eating out at restaurants, pubs and cafés. 

Official data showed activity in food and beverage services fell by about 2.7 percent during the month, underlining the pressure facing the hospitality industry when household budgets tighten.

Restaurants and pubs are typically among the first businesses affected when consumers begin reducing discretionary spending.

Other parts of the economy delivered mixed results.

Industrial production slipped slightly during January, while construction activity recorded modest growth, providing one of the few positive contributions to output for the month.

Economists say the figures illustrate how fragile consumer demand remains after several years of rising living costs.

Although inflation had shown signs of easing earlier in the year, many households continue to face high energy bills, mortgage costs and everyday expenses that limit discretionary spending.

The subdued performance also reflects wider uncertainty in global markets.

Analysts note that geopolitical tensions and rising energy prices could add further pressure on growth and inflation in the coming months if they persist.

While the January figures indicate stagnation rather than contraction, the data has renewed debate about the strength of the UK recovery and the outlook for interest rates.

Policymakers at the Bank of England are balancing signs of weak growth with concerns that energy price shocks could slow progress in bringing inflation back to target.

For businesses in the hospitality sector, the downturn in spending is a reminder of the sensitivity of consumer-facing industries to changes in household confidence.

As economic conditions remain uncertain, many companies are preparing for a period of cautious demand while waiting for clearer signs of recovery.