The UK economy returned to growth in August, according to new figures from the Office for National Statistics (ONS).
Monthly GDP (gross domestic product), a key measure of economy growth, is estimated to have increased by 0.1%, following a revised fall of 0.1% in July and a growth of 0.4% in June.
It reflects, across key sectors, services showing no growth month-on-month, construction output dropping by 0.3%, and production output increasing by 0.4%.
For the three months to August, real GDP grew by 0.3%, compared with the three months to May, a slight increase following growth of 0.2% in the three months to July.
This saw services output grow by 0.4%, production output fall by 0.3%, and construction output increase by 0.3% in the three months to August, compared with the three months to May.
Ben Jones, CBI lead economist, said: “Today’s figures confirm that growth over the summer was slower than during the first half of the year. Activity remains patchy across sectors, with many businesses reporting subdued demand and higher operating costs. And firms are choosing to sit tight on hiring and investment until there’s more clarity on the policy outlook.
“The Budget provides a critical opportunity for the government to reaffirm its commitment to growth. Going further on planning reform is a positive first step and firms will be looking for further supportive interventions on November 26th.
“This includes delivering the strategic reforms required to simplify the tax system, positioning business to invest in the skills they need through a fully flexible Growth and Skills Levy and exploring further measures to address the UK’s high energy costs.”
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