UK economy grows 0.1% in August, beating forecasts

The UK economy grew 0.1% in August, the Office for National Statistics said, as stronger production offset flat services and a contraction in construction. The result was above economists’ expectations of a 0.1% decline and followed 0.4% growth in July. The ONS also reported that gross domestic product rose 0.7% in the three months to August compared with the previous three-month period. It revised June’s monthly growth estimate up to 0.4% from 0.3%, while July’s figure remained unchanged. Production output increased 0.8% in August, its fastest monthly growth in nine months, according to the figures. Manufacturing rose 1.2%, contributing to the sector’s advance. Services, the largest part of the economy, recorded no overall growth, while construction output fell 0.2%. The monthly figures show a mixed picture across the economy: production expanded, but services did not grow and construction contracted. The stronger three-month measure provides a broader indication of recent activity. ONS director of economic statistics Liz McKeown said services had led growth over the latest three months, while production and construction fell over that period.