UK economy grows slightly in August after July decline
Britain’s economy returned to growth in August, expanding by a marginal 0.1% from July, according to official data released Thursday by the Office for National Statistics (ONS). The figures offer a modest boost for Finance Minister Rachel Reeves ahead of her budget speech next month.
The ONS also revised July’s GDP to show a 0.1% decline from June, correcting a previous estimate that indicated no change. In the three months to August, growth edged up slightly to 0.3% from 0.2% in the preceding three-month period, News.Az reports, citing Reuters.
Despite this growth, the annual pace of 1.3% remains insufficient to avoid potential tax increases in the upcoming budget. Economists had forecast the 0.1% expansion for August, in line with the actual figures.
The Bank of England (BoE) last month raised its Q3 growth forecast to 0.4% from a prior estimate of 0.3%, while keeping interest rates steady at 4% in September. BoE Governor Andrew Bailey noted that the job market is softening and inflation pressures are easing, as unemployment reached its highest level since 2021 and private sector wage growth slowed.
Monetary Policy Committee member Alan Taylor warned that the UK economy could face a “bumpy landing,” partly due to U.S. trade tariffs imposed under President Donald Trump. Retail sales earlier this week also showed weak growth, reflecting concerns over potential tax hikes in Reeves’ budget scheduled for November 26.
Similar news
