UK economy grew unexpectedly in August, say new figures

The UK economy reported surprise growth in August on the back of strong factory production, according to official figures.

However, the uptick still represented a slowdown after stronger activity earlier in the summer.

The Office for National Statistics reported gross domestic product increased by 0.1 per cent in August, following 0.4 per cent growth in July.

The statistics body also said the economy grew by 0.4 per cent in June, revising its previous prediction of 0.3 per cent upwards.

The August reading surpassed the expectations of economists, who had pointed to a 0.1 per cent decline.

It suggests resilience in the UK economy despite pressure on consumer spending and wider volatility in the global economy due to the conflict in the Middle East.

Growth in August was significantly driven by the production sector, which grew by 0.8 per cent for the month – the fastest rate for nine months.

The Office for National Statistics said this was partly driven by growth in the manufacturing sector, which lifted by 1.2 per cent due to a boost from the pharmaceutical sector.

The key services sector was flat for August, while experts highlighted strength in the sale of motor vehicles but reported a 2.7 per cent monthly decline for bars and restaurants.

The construction sector also fell further, with a 0.2 per cent fall for August amid pressure from high mortgage rates.

Data showed the economy grew by 0.7 per cent over the three months to August.

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