UK economy returns to growth in August

11th Oct 2024 07:42

(Sharecast News) - The UK economy returned to growth in August, according to figures released on Friday by the Office for National Statistics.

GDP rose 0.2% following no growth in June and July, in line with economists' expectations.

Services output grew 0.1% in August following an increase of 0.1% in July, while production output rose 0.5% following a revised 0.7% decline the month before. Output in construction was up 0.4% in August following a 0.4% drop In July.

ONS director of economic statistics, Liz McKeown, 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.

"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."

Ashley Webb, UK economist at Capital Economics, said: "The 0.2% m/m rise in GDP in August, which came on the back of the economy failing to grow at all in three of the previous four months, lends some support to our view that a mild slowdown in GDP growth in the second half of this year is more likely than another recession."