UK GDP rose 0.1% in August, beating forecasts of a fall, even as consumer spending weakened. The figures give John Healey a lift before his 28 October budget, though economists expect pressure to build later in the year.
01Summary
- 01Office for National Statistics data showed UK GDP grew by 0.1% in August, after 0.4% growth in July.
- 02City economists had forecast a 0.1% contraction, so the result surprised markets and ministers.
- 03Consumer-facing services fell by 0.3% in August, while the wider production sector grew by 0.8% and construction fell by 0.2%.
- 04GDP rose by 0.7% over the three months to the end of August and by 2.1% year on year, the strongest annual growth rate since August 2022.
- 05John Healey said the figures showed Britain’s resilience, while economists warned higher energy bills and interest rates could weaken momentum later.
02Why it matters
The data suggest the UK economy is holding up better than expected ahead of the chancellor’s first budget on 28 October. But the fall in consumer spending and warnings from economists point to pressure on households and the public finances ahead.
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