UK economy returns to growth in boost for chancellor before budget

The UK economy returned to growth in August after flatlining for two months, in a boost for the chancellor, Rachel Reeves, before the autumn budget.

- Richard Partington

The Office for National Statistics (ONS) said gross domestic product rose by 0.2% after zero growth in June and July. The reading matched the forecasts of City economists.

Liz McKeown, an ONS director of economic statistics, said: “All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months compared with the first half of the year.

“Accountancy, retail and many manufacturers had strong months, while construction also recovered from July’s contraction.”