UK economic growth ticks higher in August - ONS

(Sharecast News) - The UK economy expanded modestly in August, official data showed on Thursday, supported by the UK's dominant services sector. According to the Office for National Statistics, GDP grew by 0.3% in the three months to August, in line with expectations and a slight increase on the 0.2% uplift seen in July.

Within that, services output grew by 0.4%, unchanged on July, while construction output rose 0.3%.

Production output was lower, falling 0.3%. But it was a notable improvement on July's downwardly revised 1.4% slide.

On a monthly basis, GDP rose 0.1%, following a 0.1% fall in July, and by 1.3% year-on-year.

Liz McKeown, director of economic statistics at the ONS, said: "Services growth held steady, while there was a smaller drag from production than previously.

"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."

Ben Jones, lead economist at the Confederation of British Industry, said: "Today's figures confirm that growth over the summer was slower than during the first half of the year.

"Activity remains patchy across sectors, with many businesses reporting subdued demand and higher operating costs. Firms are choosing to sit tight on hiring and investment until there's more clarity on the policy outlook."