The UK economy shrank at the start of 2025, according to official figures which had been expected to show further meagre growth.
The Office for National Statistics (ONS) said that output declined by 0.1% during the month following the 0.4% growth seen in December.
A growth figure of 0.1% had been tipped by a majority of economists.
The ONS said a slump in manufacturing output was to blame.
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It marks a fresh blow for the chancellor as the economy faces headwinds on many fronts at a time when her priority is securing economic growth.
Looming large for Rachel Reeves is the threat of an adverse business reaction to budget tax hikes she is due to impose from April.
Firms are facing the bulk of the £40bn bill through employer national insurance contributions.
Other challenges include the escalating trade war initiated by Donald Trump which is tipped by economists to dent growth prospects globally.
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