All the main sectors grew in August 2024. Output in services rose by 0.1%, production output rose by 0.5%, and construction by 0.4%.
Services output was the main contributor to the UK economy’s growth in the three months to August, rising by 0.1%. There was also a 1% increase in construction output, while production output showed no growth over this period.
Looking over the longer term, GDP is estimated to have increased by 0.8% in the three months to August 2024 compared with the three months to August 2023, and by 1% in August 2024 compared with the same month last year.
But the ONS warned the broader picture is for slowing growth.
‘Growth is clearly fragile’
Kevin Brown, savings specialist at Scottish Friendly, said: “It is encouraging to see that GDP has managed to breathe some wind back into its sails. With inflation ticking back up and a potentially significant Budget looming, the prospects for many UK households were beginning to look slightly concerning. However, the outlook is far from assured.
“Growth is clearly fragile at the moment. We’ll have to see what the Chancellor’s Budget contains before we get a really clear picture for what the rest of the year has in store. That being said, with the Monetary Policy Committee working towards lower interest rates, there is set to be some relief moving forward for hard-pressed households.
“This relief won’t be shared by savers who will see diminishing returns on their cash. For short-term funds for a rainy day, putting money aside into cash is important, but anything longer term could be better placed in investments to stand the best chance of potentially greater returns.”
This article was first published on YourMortgage‘s sister site, YourMoney.com. Read: UK economy returned to growth in August
