UK GDP Grew 0.1% in August Before Healey's Budget — SkimNews
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- The UK economy grew 0.1% in August, per the Office for National Statistics, the last official figures before John Healey's Budget
- August's growth followed a 0.4% expansion in July and came alongside an IMF upgrade to Britain's economic outlook
- The production sector — manufacturing, oil and gas extraction, and energy supply — drove the August increase
- The services sector, the largest component of the UK economy, was flat in August while construction contracted
- IMF managing director Kristalina Georgieva said the UK had "a bit of a better growth prospect" than other G7 nations
- Healey pledged to "stay the path" at the IMF's annual meeting in Bangkok, while still facing the challenge of delivering a balanced Budget without more borrowing
Why it matters: Healey's first Budget lands in two weeks with a 0.1% August print and a flat services sector — the largest part of the UK economy — leaving him little growth cushion to fund spending pledges without adding to borrowing, even as the IMF publicly endorsed his deficit-reduction plan.
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