{"id":39293,"date":"2025-10-16T06:52:14","date_gmt":"2025-10-16T06:52:14","guid":{"rendered":"https:\/\/news.godj.com\/news\/uk-economy-grew-0-1-in-august\/"},"modified":"2025-10-16T06:52:14","modified_gmt":"2025-10-16T06:52:14","slug":"uk-economy-grew-0-1-in-august","status":"publish","type":"post","link":"https:\/\/news.godj.com\/news\/uk-economy-grew-0-1-in-august\/","title":{"rendered":"UK economy grew 0.1% in August"},"content":{"rendered":"


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The UK economy grew slightly in August helped by an increase in manufacturing output, according to the latest official figures.<\/p>\n

The economy expanded by 0.1%, the Office for National Statistics said, after contracting by 0.1% in July.<\/p>\n

The government has made boosting the economy a key priority and pressure is mounting ahead of the Budget next month.<\/p>\n

Many economists have been warning that tax rises or spending cuts will be needed to meet the chancellor’s self-imposed borrowing rules.<\/p>\n<\/div>\n

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The Institute for Fiscal Studies is projecting Rachel Reeves will need to find \u00a322bn<\/a> to make up a shortfall in the government’s finances, and will “almost certainly” have to raise taxes.<\/p>\n

On Wednesday, Reeves said she was “looking at further measures on tax and spending, to make sure that the public finances always add up”.<\/p>\n<\/div>\n

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The monthly growth figures can be volatile, and the ONS has downgraded July’s figure from its initial estimate of zero growth to a 0.1% contraction.<\/p>\n

The ONS is focusing on growth over a rolling three-month period, and in the three months to August the economy expanded by 0.3%, which was a slight improvement on the previous figure.<\/p>\n

“Economic growth increased slightly in the latest three months. Services growth held steady, while there was a smaller drag from production than previously,” said Liz McKeown, ONS director of statistics.<\/p>\n

“Continued strength in business rental and leasing and healthcare were the main contributors to services growth, partially offset by weakness in some consumer facing services, while wholesalers also fared poorly.”<\/p>\n

The main driver of growth in August was the manufacturing sector, which grew by 0.7% in the month.<\/p>\n

Yael\u202fSelfin, chief economist at KPMG UK, said that while the economy had returned to growth in August, the “outlook remains weak”.<\/p>\n

She said households were beginning to feel the impact of slowing wage rises while still facing higher costs for essentials such as food.<\/p>\n

Uncertainty about potential tax rises in the Budget is also “expected to weigh on activity for both households and businesses”, she added.<\/p>\n

“As a result, we anticipate growth to remain sluggish over the coming months.”<\/p>\n

A Treasury spokesperson said: ” We have seen the fastest growth in the G7 since the start of the year, but for too many people our economy feels stuck.<\/p>\n

“The chancellor is determined to turn this around by helping businesses in every town and high street grow, investing in infrastructure and cutting red tape to get Britain building.”<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK economy grew slightly in August helped by an increase in manufacturing output, according to the latest official figures. The economy expanded by 0.1%, the Office for National Statistics said, after contracting by 0.1% in July. The government has made boosting the economy a key priority and pressure is mounting ahead of the Budget […]<\/p>\n","protected":false},"author":1,"featured_media":39294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[1763,540,6013],"class_list":["post-39293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-august","tag-economy","tag-grew"],"_links":{"self":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/39293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/comments?post=39293"}],"version-history":[{"count":1,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/39293\/revisions"}],"predecessor-version":[{"id":39295,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/39293\/revisions\/39295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/media\/39294"}],"wp:attachment":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/media?parent=39293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/categories?post=39293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/tags?post=39293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}