UK GDP growth slows to 0.1% in August, AJ Bell says
SPY•UK GDP growth slowed to 0.1% in August, beating expectations, while output rose 0.7% over the three months to August. Production grew, but consumer-facing services weakened; markets priced a 94% probability of a November Bank of England rate increase.
1. Growth and sector trends
UK GDP growth slowed to 0.1% in August, beating expectations, while output rose 0.7% over the three months to August. Production was the only sector to grow in August, supported by AI-related manufacturing of computer and electronic equipment. Consumer-facing services weakened as rising prices and cautious spending pressured the services sector.
2. Rates and construction
Economic resilience could support another Bank of England rate increase, with markets pricing a 94% probability of a November hike. A revamped Help to Buy scheme planned for the Budget could support construction, which faces pressure from higher borrowing costs.
