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Production lifts UK output by 0.1 per cent in August

The UK economy grew 0.1 per cent in August as production expanded, while services were flat and construction fell. Over the broader three-month period, services supplied the growth and both other main sectors contracted. Manufacturing gained during August, but consumer-facing services and new construction work declined, leaving different parts of the economy moving in different directions.

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Production supports the monthly increase

The UK economy grew 0.1 per cent in August from the previous month. The Office for National Statistics, the country’s statistical agency, released the real gross domestic product estimate on 15 October.[1], [2]

Production expanded 0.8 per cent, while services output was unchanged and construction declined 0.2 per cent. Manufacturing rose 1.2 per cent, with nine of its 13 subsectors growing. Basic pharmaceutical products and preparations increased 5.1 per cent, and transport equipment grew 1.8 per cent.[1]

Services lead over three months

Over the three months to August, GDP grew 0.7 per cent against the preceding three months. Services increased 0.9 per cent and were the only main sector contributing positively. Production fell 0.2 per cent and construction contracted 1.0 per cent. The growth rates for the three-month periods ending in July and June were each revised from 0.4 per cent to 0.5 per cent.[1]

Household-facing activity weakens

Consumer-facing services declined 0.3 per cent during August, despite growing 0.4 per cent over the three-month period. New construction work fell 0.7 per cent on the month, while repair and maintenance grew 0.4 per cent. Within new work, private housing dropped 1.9 per cent. The initial monthly GDP estimate uses the output approach; fuller quarterly estimates also incorporate income and expenditure.[1]

References

  1. News sourceOffice for National StatisticsUK economy grows 0.1 per cent in August↩1↩2↩3↩4
  2. News sourceReutersUK economy grows in August↩
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