Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The UK economy registered a surprise decline in August, during what was a poor month for the consumer-facing sector, according to the Office for National Statistics on Wednesday.
The UK economy shrank by 0.3% in August from July, following a downwardly revised 0.1% climb in July from June. Month-on-month growth in July was initially forecast at 0.2%.
August's gross domestic product was expected to have remained unchanged from July.
‘There has been a continued slowing in the underlying three-month on three-month growth, where GDP also fell by 0.3% in the three months to August compared with the three months to May 2022,’ the ONS noted.
In August alone, output in consumer-facing services fell 1.8%, having risen 0.7% in July.
According to the ONS, industrial production dropped 1.8% on a monthly basis in August, a worse result than the FXStreet-cited market forecast of a smaller 0.2% decline. In July, production fell 0.3% from June.
On an annual basis, industrial production slumped 5.2%, massively missing the mark. Growth of 0.6% was expected, according to FXStreet. That would have been a slowdown from a 1.1% yearly industrial output climb in July.
Adding to the bleak economic picture on Wednesday, the ONS said the UK's goods trade deficit widened.
Exports rose 2.2% on a monthly basis in August to £68.24 billion from £66.80 billion in July. Imports rose at a faster pace, however, climbing 4.5% to £75.32 billion from £72.24 billion.
It meant the UK's trade deficit amounted to £7.08 billion in August, stretching from £5.45 billion in July.
Copyright 2022 Alliance News Limited. All Rights Reserved.