Data published by the Office for National Statistics (ONS) showed that the GDP rose by 0.2% in August after remaining unchanged in July. Economists also expected a 0.2% increase. Meanwhile, over the three-month period (through August), the economy expanded by 0.2% compared with the three months to May. Services output was the main contributor to the growth in the three months to August, rising by 0.1%.
On an annual basis, GDP grew by 1.0% in August after an increase of 0.9% in July (revised from +1.2%). Consensus estimates suggested an increase of 1.4%. For a three-month period (through August), GDP grew by 0.8% compared with the three months to August 2023.
The ONS said services output rose by 0.1% in August after a similar increase in July. Of the 14 subsectors, there were positive contributions from 4 in August, while 7 subsectors contributed negatively to the month and 3 made no contribution. The largest positive contribution to the growth in the services sector came from the professional, scientific and technical activities subsector where output rose by 1.6% in the month, with growth in six out of the eight industries in this section, following a 1.5% fall in July. Output in consumer-facing services increased by 0.2% in August, following a similar growth in July. Retail trade, except of motor vehicles and motorcycles, was the largest contributor at the industry level, with output rising here by 1.0%. There was also growth of 4.1% in other personal service activities in August.
Meanwhile, industrial production increased by 0.5% after falling by 0.7% in July (revised from -0.8%). Economists had expected an increase of 0.2%. Manufacturing production increased by 1.1% after falling by 1.2% in July (revised from -1%). Consensus estimates suggested an increase of 0.2%.