UK GDP up 0.1% in August, quarterly growth 0.3%

The UK economy recorded marginal growth in August, with monthly gross domestic product rising 0.1 percent, the Office for National Statistics said on Thursday, after a revised 0.1 percent contraction in July. Quarterly GDP expanded 0.3 percent in the three months to August, up from 0.2 percent in the three months to July, a mixed picture that underscores an economy slowing after a buoyant first half of the year.

The ONS said monthly growth in August was aided by demand for business rental and leasing services and healthcare, while consumer-facing services such as travel agents, tour operators and wholesalers weighed on output. Production rose 0.4 percent in August, but construction fell 0.3 percent over the month even though it edged up over the three-month period. ONS director of economic statistics Liz McKeown said, "Economic growth increased slightly in the latest three months. Services growth held steady, while there was a smaller drag from production than previously."

Economists had largely expected modest expansion for August. A Bloomberg poll and market consensus pointed to 0.1 percent growth, but forecasters warned of downside risks. Sanjay Raja, an economist at Deutsche...