UK economy expands 0.2% month-over-month in August

The UK economy has expanded at a monthly rate of 0.2% in August, after recording zero growth in the prior two months, data by the Office for National Statistics showed.

The services sector grew 0.1% in August, supported by expansion in:

– accounting, bookkeeping and auditing (+4.3% month-over-month);
– scientific research and development (+2.8% month-over-month);
– legal activities (+1.7% month-over-month).

The production sector grew 0.5% in August, following a 0.7% contraction in July. Manufacturing output was the main driver, while surging 1.1% in August. Growth was underpinned mostly by:

– motor vehicles, trailers and semi-trailers (+3.6% month-over-month);
– basic metals and metal products (+2.3% month-over-month).

Conversely, mining and quarrying output shrank 4% in August, primarily due to a 4.2% decrease in extraction of crude oil and natural gas.

Finally, the UK’s construction sector grew 0.4% in August, following a 0.4% contraction in July.

The EUR/GBP currency pair settled 0.11% lower at 0.8359 on Friday. For the week, the minor currency pair remained without change.