UK economy grows 0.1% in August, beating forecasts

Summarised from 8 outlets · 10 reports · Updated 15 Oct, 07:28 · Archive

The UK economy grew by 0.1 per cent in August, exceeding economists' expectations of a 0.1 per cent contraction.

The Office for National Statistics reported that UK gross domestic product rose by 0.1 per cent in August, defying economist expectations of a contraction. All outlets confirmed this figure, which represented better-than-expected performance but marked a slowdown from the previous two months.

August's growth was driven by a 0.8 per cent expansion in production, which includes manufacturing, oil and gas extraction and energy supply. However, this was offset by weakness elsewhere in the economy. The services sector, which forms the largest part of the UK economy, showed no growth in August, whilst the construction sector contracted by 0.2 per cent.

Growth had been stronger in the preceding months. July saw 0.4 per cent growth, a figure previously released. June also recorded 0.4 per cent growth, following an upward revision from the 0.3 per cent initially reported.

Over the three-month period to August, the economy expanded by 0.7 per cent. ONS director of economic statistics Liz McKeown said the growth was 'robust', noting that computer programming had been the biggest contributor to expansion over that period. She also noted that production and construction had contracted over the three-month span, despite the monthly production boost in August.

The August figures come less than two weeks before Chancellor John Healey's Budget on 28 October. The International Monetary Fund upgraded its UK growth forecast for this year, with managing director Kristalina Georgieva saying the country was seeing 'a bit of a better growth prospect' than other G7 nations. However, the IMF warned it expected a modest slowdown in 2027 as higher energy prices take their toll.

The data prompted a market response, with the British pound jumping 0.4 per cent against the US dollar and yields on UK government bonds falling across the curve. The figures arrive as Healey faces pressure to announce economic support amid rising government borrowing costs and volatility in global markets.

How it is being reported

• UK economy unexpectedly grows 0.1% in AugustThe Office for National Statistics reported that gross domestic product (GDP) increased by 0.1% in August, following 0.4% growth in July.Evening Standard · 15 Oct, 07:45
• UK economy grew unexpectedly after production boostThe UK economy grew unexpectedly in August after a boost in the production sector, according to official statistics, even as growth slowed across the country. GDP expanded by 0.1 per cent in August following several months of high growth. A poll of economists by Bloomberg predicted that the UK economy had contracted by 0.1 per [...]City AM · 15 Oct, 07:20
• UK economy unexpectedly grows 0.1% in AugustThe Office for National Statistics reported that gross domestic product (GDP) increased by 0.1% in August, following 0.4% growth in July.Independent Business · 15 Oct, 07:18
• UK economy unexpectedly grows 0.1% in AugustThe Office for National Statistics reported that gross domestic product (GDP) increased by 0.1% in August, following 0.4% growth in July.Evening Standard · 15 Oct, 07:18
• UK economy grows unexpectedly by 0.1% in AugustThe UK economy grew by 0.1% in August, the Office for National Statistics said.The Independent · 15 Oct, 07:17
• Economy grew 0.1% in August ahead of chancellor's first BudgetThe Office for National Statistics (ONS) said GDP grew in August.BBC News · 15 Oct, 07:15
• UK economy grew 0.1% in August, beating expectationsThe U.K. economy grew by a better-than-expected 0.1% in the month to August.CNBC · 15 Oct, 07:12
• UK economy growth slows 0.1% in August, latest figures show as Chancellor prepares to deliver Autumn Budget in two weeksThe UK economy grew by 0.1 per cent in August compared to the previous month, the Office for National Statistics revealed today. This follows growth of 0.4 per cent in both July and June.Daily Mail · 15 Oct, 07:09
• UK economy unexpectedly grows 0.1% in August despite fall in consumer spendingLatest data comes just two weeks before chancellor’s budget looks to help consumers traverse the cost of living crisis The UK economy unexpectedly continued to grow in August despite a fall in consumer spending before chancellor John Healey’s budget. Figures from the Office for National Statistics showed gross domestic product (GDP) rose by 0.1% last month, compared with 0.4% growth in July. City economists had forecast the economy would shrink by 0.1%. Continue reading...The Guardian · 15 Oct, 07:05
• Surprise GDP growth as UK economy stronger than first thoughtThe UK economy has surprisingly grown, despite predictions it would shrink, official figures show.Sky News · 15 Oct, 06:06

In this story: UK · Office for National Statistics · John Healey · International Monetary Fund · Kristalina Georgieva · Liz McKeown

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