UK economy growth slows 0.1% in August, latest figures show as Chancellor prepares to deliver Autumn Budget in two weeks
The UK economy grew by 0.1% in August, slowing from 0.4% in July but beating economists’ expectation of a 0.1% contraction. The figures point to continued overall growth, though activity was uneven across sectors, as Chancellor John Healey prepares to deliver the Budget on 28 October.
GDP rose by 0.7% in the three months to August, compared with 0.5% in each of the three-month periods to July and June. The Office for National Statistics revised June growth up to 0.4%; services drove growth across the latest three months, while production and construction fell, and services recorded no growth in August.
- August GDP grew 0.1%, above forecasts.
- Growth slowed from July’s 0.4%.
- Services led growth over three months.
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Gross domestic product (GDP) measures the value of goods and services produced in the UK, and is used to track the size and direction of the economy. Monthly figures can move up and down, so economists also look at growth over several months and at how different industries are performing.
The main parts of the economy include services, such as shops, transport and healthcare; production, including manufacturing and energy; and construction. Their fortunes can differ, meaning growth in one area may be offset by falls in another.
The Chancellor sets out the government’s tax and spending plans in the Budget, which can affect households, businesses and public services. Economic figures are among the information used to assess the UK’s finances and the choices facing the government.