Early January is seen as the time to draw a line under past disappointments and look ahead to brighter days – and that extends to politics, business and the economy.

Unfortunately, analysis reported today points to disappointing trends in the areas of manufacturing and retail over Christmas, suggesting more realistic prospects for the UK in 2025.

British factory output contracted at the fastest rate in 11 months in December, amid a swathe of job losses, growing concerns about rising business taxes and a worsening global economy. The S&P Global UK manufacturing PMI survey recorded a reading of 47.0 in December, from 48.0 in November – any score below 50 indicates activity is contracting.

Meanwhile, retailers reported a “drab” December, concluding another disappointing year for the high street, figures show.

Shoppers in Leeds. Picture: Steve Riding.

All of this is damaging to hopes that this could be the year in which we become more economically prosperous.

It will be grim reading for Sir Keir Starmer, who marks six months as Prime Minister this weekend. His neighbour at 11 Downing Street, Chancellor of the Exchequer and Leeds West and Pudsey MP Rachel Reeves, will be dearly hoping for better economic forecasts in the coming months to counter dismay over early government policy decisions including the increase to employer's National Insurance rates, which comes into effect from April.

Rob Dobson, director at S&P Global Market Intelligence, said that “business sentiment is now at its lowest for two years as the new Government’s rhetoric and announced policy changes dampen confidence and raise costs at UK factories and their clients alike”.

With the return of Parliament next week, Ms Reeves will need to provide some hope.

Economic outlook dampens New Year hopes for brighter days - The Yorkshire Post says

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