Economy rebounds with January growth Figures from the Office for National Statistics (ONS) show that the economy expanded by 0.3% in January, with the rebound following a 0.5% contraction in December. While the data shows month-on-month growth, the economy stagnated in the November to January period compared with the previous three months. The report also shows that January saw a fall in output in both the manufacturing and construction sectors. Darren Morgan, the ONS’s director of economic statistics, said that while the economy “partially bounced back from the large fall seen in December … Across the last three months as a whole and, indeed over the last 12 months, the economy has, though, showed zero growth.” Prime Minister Rishi Sunak said the economy "has proved more resilient than many expected, but there is a long way to go." Ruth Gregory, deputy chief UK economist at Capital Economics, commented: “We doubt January's strength will last and our hunch is that there will still be a recession.” However, economists including the National Institute of Economic and Social Research think-tank and investment banks Goldman Sachs and JPMorgan have predicted that the UK will avoid a downturn. The ONS has a long history of inaccurate forecasting so the latest figures are no surprisethat they misread the economy yet again.