UK economy grew by 0.2% in August, official figures show, following two months of stagnation
11 October 2024, 08:05
The UK economy grew by 0.2% in August according to official figures, having flatlined over the previous two months.
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According to the latest data from the Office for National Statistics (ONS), the UK's gross domestic product (GDP) recorded 0.2% growth in August.
The economy had previously experienced no growth throughout June or July.
The figures align with economist predictions, but is nevertheless a boost for Chancellor Rachel Reeves ahead of this month's autumn Budget.
It comes as House price growth turned positive for first time in two years, providing a brighter picture for housing market activity, the Royal Institution of Chartered Surveyors said.
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."
The services sector was the main contributor to growth, up 0.1% in August after a similar rise in July.
Read more: House price growth turns positive for first time in two years – surveyors
Meanwhile, the smaller production sector swung to 0.5% growth after a 0.7% contraction in July, revised from a 0.8% estimate in last month's figures.
Construction output grew by 0.4% in August, following an unrevised fall of 0.4% in July, and grew by 1% in the three months to August 2024.
Chancellor Rachel Reeves said: "It's welcome news that growth has returned to the economy.
"Growing the economy is the number one priority of this Government so we can fix the NHS, rebuild Britain, and make working people better off.
"While change will not happen overnight, we are not wasting any time on delivering on the promise of change.
"Next week hundreds of the world's biggest businesses will come to Britain as we deliver on our promise to bring investment, growth, and jobs back to every part of the country."
