UK economy unexpectedly grows in August despite fall in consumer spending

The UK economy defied expectations in August with a modest but unexpected 0.1% growth in gross domestic product, reversing predictions of a contraction and marking the first expansion since July’s 0.4% rise. The uptick came despite a decline in consumer spending, offering a rare positive signal ahead of the chancellor’s first budget. Economists had forecast a 0.1% shrink, making the figures a surprise boost amid ongoing economic uncertainty. The data suggests resilience in some sectors, though challenges in household spending remain a key concern.

Latest data showing surprise 0.1% growth is boost to John Healey a fortnight before his first budgetBusiness news – live updatesThe UK economy unexpectedly continued to grow in August despite a fall in consumer spending before John Healey’s first budget as chancellor.Figures from the Office for National Statistics showed gross domestic product (GDP) rose by 0.1% last month, compared with 0.4% growth in July. That confounded a forecast by City economists of a 0.1% contraction. Continue reading...