- UK GDP grew 0.1% month-on-month in August, beating Reuters-polled economists who expected a 0.1% contraction.
- Annual GDP growth reached 2.1% in August, above the 1.7% forecast and the highest year-on-year reading since August 2022, per the ONS.
- Production grew 0.8% in August, offsetting a flat services sector and a 0.2% decline in construction.
- The pound rose 0.4% against the U.S. dollar after the release, and the 10-year gilt yield fell 9 basis points to 5.3364%.
- Analysts say the slowdown in momentum, after 0.4% growth in June and July, reduces fiscal headroom for Chancellor John Healey ahead of his first Budget on Oct. 28.
Quotes
“the economy remains fragile”
“The U.K. economy remains the fastest growing G7 economy.”