Economy Grew by Less than Expected in August and July Figures Have Been Revised Down

GDP increased by 0.4% in August, below expectations of 0.5% and still lower than pre-lockdown levels. Figures for July have also been revised downwards this morning, showing a 0.1% contraction rather than the previously reported 0.1% growth. MailOnline has the story.

Numbers published this morning by the Office for National Statistics (ONS) revealed that U.K. gross domestic product remains 0.8% lower than it was before the coronavirus crisis.

Meanwhile, the ONS said its figures for July have been revised downwards in a move likely to cause alarm in the Treasury. …

It is the first time the economy has shrunk since January this year when the winter lockdown wreaked havoc.

The ONS said growth picked up in August as the economy benefited from the full lifting of coronavirus restrictions, which boosted hospitality and events sectors.

But the August growth figure was lower than expected, showing signs of a slowdown in the U.K.’s bounce back from the pandemic as global supply chain problems take their toll.

The economy will now need to surge by 2.1% in September if it is to remain on track with the Bank of England’s forecast for overall growth of 2.1% in the third quarter of 2021.

The ONS changed its assessment of the economic picture in July because of downwardly revised data relating to the manufacture of cars, oil and gas. …

Overall consumer-facing services [also] remain 4.7% below the level recorded in February 2020.

Worth reading in full.

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