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UK economy picks up again after two months of no growth

Britain's economy returned to growth in August after two successive stagnant months.

Gross domestic product (GDP) grew by 0.2% as service, production and construction output all picked up, the Office for National Statistics said Friday.

Service output climbed by 0.1% in line with growth seen in July, while construction and production picked up by 0.4% and 0.5% respectively after both declining previously.

GDP was estimated to have increased by 0.2% over the three months to August compared to the quarter to May, with estimates for flat growth in July being left unchanged.

Growth came in at 0.8% against the same three months a year earlier, while the figure climbed by 1.0% when compared to August 2023.

Robinhood analyst Dan Lane noted the figures would come as a “relief” to the government, but pointed to a slowdown in the second half after the UK racked up the fastest growth among the G7 during the early stages of the year.

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