UK Economy Declines Amid Rising Insolvencies, Job Growth

The UK economy began 2025 on a shaky note, contracting by 0.1% in January due to declines in industrial output and construction, despite some resilience in retail and services. Unemployment rose by 40,000 in the three months leading to January, with public sector employment increasing, particularly in the NHS and public administration. Analysts caution that rising business costs and economic uncertainty could lead to higher unemployment and weaker pay settlements in the coming months. Meanwhile, the Bank of England is assessing the impact of an upcoming national insurance rise, which is expected to increase employment costs for firms significantly, especially in labor-intensive sectors. Experts are concerned about the overall economic landscape, with upcoming forecasts likely addressing inflation, interest rates, and regional growth prospects. The Greater Danbury Chamber is set to host an Economic Forecast event on April 25, focusing on similar themes affecting the US and Connecticut economies.