The numbers are in
The UK economy grew by 0.1% in August. While that might sound like small potatoes, it actually beat what the experts were predicting. This follows a 0.4% bump in July, keeping the upward trend alive.
Over the last three months ending in August, the economy posted a 0.7% growth rate. Liz McKeown, the director of economic statistics at the Office for National Statistics (ONS), called the performance "robust," noting that the computer programming sector is putting in the heavy lifting to keep the vibes positive.
Sector breakdown
It’s a mixed bag under the hood, though. The production sector—think manufacturing, energy supply, and oil and gas—gave the economy a much-needed boost in August. However, the services industry, which is the massive engine room of the UK economy, was basically flat. Meanwhile, the construction sector actually contracted, which is a major L for that part of the industry.
Why it matters
This is the last data drop before Chancellor John Healey drops his first Budget later this month. Real talk: the pressure is high. While the IMF is currently giving the UK a W for its debt-cutting strategy and growth prospects compared to other G7 nations, Healey is walking a tightrope. He needs to balance the books without leaning too hard on borrowing. As he told officials in Bangkok, he’s planning to "stay the path." Whether that path ends in tax hikes or spending cuts is the question keeping everyone on edge until the budget announcement in two weeks.
