UK Economy Grows 0.1% in August, Says ONS

Official data released on Thursday showed that the UK economy grew 0.1% in August, following a 0.1% contraction in July, according to the Office for National Statistics (ONS).

Economists polled by Reuters had also forecast a 0.1% monthly expansion in gross domestic product (GDP).

Last month, the Bank of England (BoE) raised its growth estimate for the third quarter from 0.3% to 0.4%.

BoE policymakers, who kept interest rates unchanged at 4% in September, are attempting to manage an economy struggling with stubborn inflation and sluggish growth.

Governor Andrew Bailey said on Tuesday that the UK labour market was showing signs of cooling and that inflationary pressures were easing, as official figures revealed unemployment at its highest level since 2021 and a slowdown in private-sector wage growth.