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UK economy grows 0.1% in August despite forecasts of contraction, giving Healey a pre-Budget boost

UK economy grows 0.1% in August despite forecasts of contraction, 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 beat expectations in August, recording 0.1% growth when analysts had predicted a modest contraction. The Office for National Statistics confirmed three consecutive months of growth, with GDP up 0.7% across the three months to August — 1.8% higher than the same period a year ago. Chancellor John Healey described the figures as a "sign of resilience" and pledged that the coming Budget would give people "breathing space" from cost of living pressures. The Bank of England is expected to raise its base rate to 4% at its 5 November meeting.

Services drove the expansion, while production and construction both contracted over the three-month period.

The IMF lifted its UK growth forecast to 1.3% for next year, though analysts caution that inflation and the costs of Middle East conflict remain serious threats.

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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