The UK economy reported surprise growth in August on the back of strong factory production, according to official figures released today.
Nevertheless, it represented a slowdown after stronger activity earlier in the summer.
The Office for National Statistics (ONS) reported that gross domestic product (GDP) increased by 0.1 per cent in August, following 0.4 per cent growth in July.
The statistics body also said the economy grew by 0.4 per cent in June, revising its previous prediction of 0.3 per cent upwards.
The August reading surpassed the expectations of economists, who had pointed to a 0.1 per cent decline for the month.
Data showed that the economy grew by 0.7 per cent over the three months to August.
This followed a growth of 0.5 per cent in the three months to July, and a growth of 0.5 per cent in the three months to June.
Commenting on the data for the three months to August, 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 UK economy grew by 0.7 per cent over the three months to August, according to the ONS
Chancellor John Healey will deliver the Budget in two weeks’ time on October 28
‘Upward revisions to already strong services growth in June and July helped drive robust growth across the three months, despite services showing no growth in August.
‘Computer programming was once again the largest contributor to growth in the three months to August.
‘Looking at a longer-term picture, compared with the same three-month period a year ago, the increased strength now seen in services is evident not just in computer programming but across a range of business-facing industries, including legal services, research and development and advertising.’
It comes ahead of Chancellor John Healey delivering the Budget on October 28.
