The UK economy saw a modest 0.2% growth in August, meeting consensus forecasts. Despite unfavourable conditions like heavy rainfall, which hampered the construction sector, the economy showed resilience. Data also revealed a 0.3% growth between June and August.
The services sector, which grew by 0.4%, was the major contributor to the economy. In contrast, consumer services dipped by 0.6%, largely due to a 10.8% fall in sports, amusement, and recreation activities. Production output declined by 0.7%, while construction was down by 0.5% due to weather-related delays.
Jonathan Moyes, head of investment research at Wealth Club, said: “It was pleasing to see the UK produce a modest 0.2% growth in August. This was despite the dreary weather, which appears to have affected construction and consumer services. Growth was in line with consensus forecasts, which called for around 0.2% growth. On a quarterly basis, the economy remains in the slow lane, with GDP up 0.3%.”
Moyes also noted that the economy seems to be defying long-standing forecasts of a looming recession. “Whilst growth may be nothing to write home about, the economy does appear to be shaking off fears of a looming recession. Forecasters have long predicted a recession that has yet to arrive. The economy may continue to find a way to muddle through, despite the weather,” he added.
