UK economy returns to growth in boost to Labour before budget

The UK economy returned to growth in August, offering a boost to Chancellor Rachel Reeves ahead of the autumn budget. According to the Office for National Statistics (ONS), GDP increased by 0.2% after stagnant growth in June and July, in line with City economists’ forecasts.

Liz McKeown, ONS director of economic statistics, noted that while all major sectors grew in August, overall growth has slowed compared to earlier in the year. Strong performances in accountancy, retail, and manufacturing, along with a recovery in construction, were partly offset by declines in wholesaling and oil extraction.

Growth for the three months to August also rose by 0.2%, slower than the 0.7% and 0.5% increases in the first two quarters of 2024, after the economy exited a mild recession in late 2023.

Reeves has pledged that Labour’s first budget in over a decade will focus on reigniting growth through investment, increasing household incomes, and repairing public services, though she acknowledged difficult decisions will be needed to balance the budget.

via Reuters, The Guardian