UK economy grew unexpectedly by 0.1% in August

The UK economy returned surprise growth in August, beating economists' forecasts of a contraction for the month.

Gross domestic product (GDP) rose by 0.1 per cent in August, according to the Office for National Statistics.

Strong factory production helped drive the expansion, the official figures showed.

The reading marked a slowdown, however, after stronger activity earlier in the summer.

July's growth was stronger, at 0.4 per cent, while the economy also expanded by 0.4 per cent in June.

The June figure was revised upwards by the statistics body, which had previously put growth at 0.3 per cent.

Across the three months to August, the economy grew by 0.7 per cent, the data showed.

ONS director of economic statistics Liz McKeown said: “GDP growth showed further strength in the latest three months, led by the services sector, while both production and construction fell.”

The August performance exceeded the expectations of economists, who had pointed to a 0.1 per cent decline for the month.

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