UK economy grew 0.1% in August, beating forecasts as production offset weak services and construction
· Business · CNBC, The Independent
The UK economy expanded by 0.1% in August, defying economist expectations of a 0.1% contraction. On an annual basis, GDP grew 2.1%, surpassing forecasts of 1.7% and marking the highest year-on-year reading since August 2022. Production grew 0.8% while services showed no growth and construction fell 0.2% month-on-month. The reading marked a slowdown from 0.4% growth in June and July, as the economy grapples with sticky inflation and surging energy costs linked to the Russia-Ukraine and Iran wars.
Why it matters
The GDP data provides immediate relief for the UK government ahead of the Autumn Budget, offering a stronger economic foundation to navigate a cost-of-living crisis while adhering to fiscal rules on public debt.
Read the original report — CNBC
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