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UK economy grows 0.1% in August against expectations, giving Healey a pre-Budget boost

UK economy grows 0.1% in August against expectations, giving Healey a pre-Budget boost
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 defied forecasts of a contraction and grew by 0.1% in August, driven by a surge in factory output, with the pharmaceutical sector leading a 1.2% jump in manufacturing. Chancellor John Healey called the figures a "sign of resilience" ahead of his first Budget in two weeks. The IMF this week upgraded its UK growth forecast to 1.3% for next year, adding further momentum behind the numbers.

The economy expanded 0.7% across the three months to August, with June's figure revised upwards from 0.3% to 0.4%.

Some argue Labour cannot take credit, pointing to global tailwinds rather than government policy as the driver.

The British Chambers of Commerce urged Healey to cut National Insurance contributions for young workers in the Budget to sustain the momentum.

MoreBBC News - BusinessHealey says surprise UK growth is 'sign of resilience' ahead of BudgetThe TelegraphLabour can’t take credit for healthy economic growthThe IndependentWhat does 0.1% growth mean for the looming Budget?Evening StandardUK economy unexpectedly grows 0.1% in AugustThe IndependentUK economy grew unexpectedly by 0.1% in August
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