UK GDP by 0.2 percent in the three months to August after showing no growth in July, the Office of National Statistics (ONS) has said.
In August, services grew 0.1 percent, production grew 0.5 percent and construction grew 0.4 percent.
Gross domestic product (GDP) measures the value of goods and services produced in the UK. It’s used to estimate the size and growth of the economy.
Commenting on the figures, Liz McKeown, director of economic statistics at ONS said: “All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months, compared to the first half of the year.”
Ms McKeown continued: “In August, accountancy, retail, and many manufacturers had strong months, while construction also recovered from July’s contraction. These were partially offset by falls in wholesaling and oil extraction.”
The data reflects the UK’s ongoing recovery from the recession experienced at the end of last year.
A technical recession is characterised by two successive quarters of negative growth. The first quarter GDP growth remained unchanged at 0.7 percent, signalling the conclusion of the brief recession.
While only a small increase, Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, noted: “August’s 0.2 percent expansion is likely to be comforting for the new Government as it looks towards its first Budget on October 30 when Chancellor Rachel Reeves is expected to deliver a raft of ‘painful’ tax rises.
“The positive growth figure may even help to quell the Government’s doom-mongering about the state of the country’s finances, something that has had a detrimental effect on business and consumer confidence in recent weeks.”
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