AI-boosted UK economy beats forecasts, giving Healey pre-budget lift
SPY•UK GDP rose 0.1% in August, beating forecasts for a 0.1% decline. Computer programming and manufacturing led the strength, while services output was flat.
1. Growth beats forecasts
The UK economy grew 0.1% in August, according to the Office for National Statistics, exceeding economists’ forecast for a 0.1% fall. Annual growth picked up to 2.1%, its highest reading since October 2022.
2. Programming and manufacturing
Manufacturing output rose 1.2% in August, while services output was flat. Computer programming grew 1.1% that month and was the largest contributor to growth over the three months to August; its output has increased 13% so far this year.
3. Policy implications
The figures could influence Bank of England policymakers as they weigh a rate rise next month. Finance minister John Healey still faces a narrow path to meeting fiscal rules, while the International Monetary Fund has said higher energy prices and long-term interest rates are likely to weigh on UK growth next year.
