UK Economy Grows 0.1% in August Ahead of Budget Announcement

The UK's economy grew by 0.1% in August, according to the latest official figures released before Chancellor John Healey's upcoming Budget. The Office for National Statistics (ONS) reported that this growth was better than analysts had anticipated. This slight increase follows a growth of 0.4% in July, alongside positive revisions to the economic outlook for the UK from the International Monetary Fund (IMF). Healey faces the challenge of delivering a balanced Budget without increasing borrowing. The growth in August was supported by an increase in production, which encompasses manufacturing, oil and gas extraction, and energy supply. However, the services sector, which constitutes the largest part of the UK economy, remained flat, and the construction sector experienced a contraction. Over the three months leading to August, the economy grew by 0.7% overall. ONS director of economic statistics Liz McKeown noted that computer programming was the largest contributor to what she termed 'robust' growth during this period, although both the production and construction sectors saw declines. These figures were released as Healey arrived in Bangkok for the annual meeting of the IMF. Earlier in the week, the IMF commended the UK's plans to reduce debt levels, with managing director Kristalina Georgieva stating that the UK is experiencing 'a bit of a better growth prospect' compared to other G7 nations. Upon arriving in Bangkok, Healey expressed satisfaction with the IMF's support for the UK's economic plans, emphasizing that the UK stands out in terms of growth despite global economic challenges.