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The UK economy returned ever-so-slightly to growth in August, as expected, but the decline in July was slightly worse than previously estimated, according to figures from the Office for National Statistics on Thursday.
The ONS estimates that gross domestic product rose 0.2% in August from July, after contracting by a revised 0.6% in July from June.
August’s reading was in line with FXStreet-cited market consensus. July’s decline was downwardly revised from 0.5% shrinkage.
The ONS said that services output, which rose 0.4% during the month, was the only positive contributor to growth in August.
‘The largest drivers of the growth in monthly services output were professional, scientific and technical activities, and education,’ the statistics body explained.
Production output fell 0.7% in August, softening somewhat from the 1.1% contraction in July. Construction fell 0.5% over the month, after a 0.4% decline the month before.
Separately, the ONS reported that the UK’s industrial production continued to decline in August.
Industrial production fell 0.7% in August on a monthly basis, after a downwardly revised 1.1% fall in July. August’s reading was worse than market forecasts of a 0.2% decline. July’s decline was first estimated at 0.7%.
The ONS said manufacturing was the main contributor to the lower monthly production.
Annually, industrial production rose 1.3% in August, undershooting forecasts of 1.7%. However, it was better than the 1.0% growth seen in July, which was upwardly-revised from 0.4%.
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