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UK economy beats forecasts with surprise 0.1% August growth, giving Healey a pre-Budget boost two weeks out

John Healey, whose Autumn Budget in two weeks must address a cost of living crisis, as the economy grew just 0.1% in August — far below the summer's 0.4% pace.
John Healey, whose Autumn Budget in two weeks must address a cost of living crisis, as the economy grew just 0.1% in August — far below the summer's 0.4% pace.
1% August growth figure, which came in below some forecasts but still exceeded the predictions of analysts who had expected a flat reading.
1% August growth figure, which came in below some forecasts but still exceeded the predictions of analysts who had expected a flat reading.

Britain's economy expanded 0.1% in August, wrong-footing economists who had pencilled in a 0.1% contraction, the Office for National Statistics confirmed — making it the final GDP reading before Chancellor John Healey presents his Autumn Budget on October 28. Factory output rose 0.8%, its sharpest increase in nine months, while manufacturing climbed 1.2%, preventing a flat services sector and a fourth straight monthly decline in construction from dragging the headline figure negative. Year-on-year GDP growth reached 2.1%, the best such reading since August 2022, and sterling gained 0.4% on the dollar following the release.

Growth decelerated markedly from 0.4% in July, and analysts caution that Healey's fiscal headroom is limited given climbing debt costs and an anticipated Bank of England rate rise in November.

Consumer-facing services contracted 0.3% as soaring energy bills weighed on household spending, with food, drink and recreation among the sectors recording the steepest falls.

Healey described the figures as 'welcome news', citing the IMF's upward revision to UK growth forecasts and asserting that Britain will have 'the lowest deficit in the G7' by 2029.

MoreCity A.M.Healey promises Budget will ‘meet the moment’LBCChancellor hints public should prepare for tough Autumn budgetEvening StandardBudget will have to reflect ‘tough time’, Healey says during IMF visitFinancial TimesJohn Healey promises to ‘stay the path’ on reducing UK deficitDaily MailIMF hands Healey a Budget boost - now he must heed its call to tackle debt, says ALEX BRUMMERDaily Mail NewsUK economy growth slows 0.1% in August, latest figures show as Chancellor prepares to deliver Autumn Budget in two weeksBBC News - BusinessUK economy grew 0.1% in August ahead of Healey's first BudgetLBCUK economy unexpectedly grew 0.1% in August - ahead of Chancellor’s first budgetLBCUK economy unexpectedly grows 0.1% in AugustThe GuardianUK economy unexpectedly grows 0.1% in August despite fall in consumer spendingThe IndependentUK economy grew unexpectedly by 0.1% in AugustCity A.M.UK economy grew unexpectedly after production boost
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