UK Economy Grows by 0.2% in August, Easing Stagnation Concerns

Chancellor Rachel Reeves welcomes the growth ahead of her first Budget, despite slowing economic momentum.

The UK's GDP increased by 0.2% in August, aligning with economist forecasts and ending two months of economic stagnation.
Growth was driven by a 0.5% rise in manufacturing and a 0.4% increase in construction output, while the services sector grew by 0.1%.
Despite the positive figures, the Office for National Statistics noted a broader trend of slowing growth compared to earlier in the year.
Chancellor Reeves is preparing to deliver a Budget that may include tax hikes to address a £25 billion fiscal gap.
The Bank of England is closely monitoring economic conditions, with potential interest rate cuts anticipated in November.