Economics

UK economy grew 0.1% in August ahead of Healey's first Budget

The Office for National Statistics (ONS) said GDP grew in August.

UK economy grew 0.1% in August ahead of Healey's first Budget

The UK economy edged up in August, according to the final official data released before John Healey's Budget.

With the chancellor due to present his tax and spending plans at the end of the month, the Office for National Statistics said the economy increased by 0.1% over the month.

That modest rise came after growth of 0.4% in July, along with positive upgrades to the outlook for Britain's economy from the International Monetary Fund (IMF), the global watchdog.

Even so, Healey still faces the task of delivering a balanced Budget without relying on extra borrowing.

Britain's economy was lifted in August by higher production, which covers manufacturing, oil and gas extraction, and energy supply.

The services sector, which accounts for the biggest share of the UK economy, was unchanged during the month, while construction shrank.

The figures were published after Healey arrived in Bangkok for the IMF's annual meeting.

Earlier this week, the global financial watchdog praised the UK's plans to reduce debt levels as global borrowing costs rise, with managing director Kristalina Georgieva saying the country had "a bit of a better growth prospect" than other G7 nations.

Speaking in Bangkok on Thursday, Healey said: "I'm pleased the IMF here in Bangkok backed our economic plans in London.

"They say the UK stands out on growth despite the deep economic shocks that are affecting worldwide at present."

He said he would "stay the path" as he prepares to deliver the Budget in two weeks' time.

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