TOP NEWS: August UK GDP Growth Disappoints Despite Eat Out To Help Out

(Alliance News) - The UK economy grew less than expected in August despite the government's 'Eat ...

Alliance News 9 October, 2020 | 7:21AM
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(Alliance News) - The UK economy grew less than expected in August despite the government's 'Eat Out to Help Out' scheme lifting the services sector, according to figures from the National Office for Statistics on Friday.

Gross domestic product grew 2.1% month-on-month in August, slower than the 6.4% seen in July. The economy remains 9.2% below the levels seen in February, before the Covid-19 pandemic battered activity.

Consensus, according to FXStreet, had seen growth of 4.6% in August.

In August, the index of services grew 2.4% month-on-month, production rose 0.3% and manufacturing increased 0.7%. Construction advanced 3.0%.

"The accommodation and food services sub-sector contributed 1.25 percentage points to the 2.1% growth in GDP for August 2020, as the combined impact of easing lockdown restrictions, Eat Out to Help Out Scheme and "stay-cations" boosted consumer demand," the ONS noted.

In the three months to August, the economy grew 8.0% on a sequential basis.

Separately, the ONS showed that the UK's trade surplus - excluding non-monetary gold and other precious metals - was GBP7.7 billion in the three months to August, up from GBP3.9 billion in the three months to May, as exports grew by GBP21.4 billion and imports grew by a lesser GBP17.5 billion.

By Lucy Heming;

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