UK factories cut production for 11th month in a row amid tensions in Red Sea

Dominant services sector expanded more than expected, boosting overall outlook for British economy, according to survey

UK factories entered the new year cutting production and investment in a sign that rising tensions in the Red Sea are harming the ability of manufacturers to end almost a year of contraction.

Factory owners reported import price rises and delays to exports that forced them to reduce output in January for an 11th consecutive month, according to a leading business survey.