UK grows 0.1% in August, when a decline was expected

WHAT HAPPENED

The UK economy grew 0.1% in August compared to July, although a decline of up to 0.3% was expected. Industry advanced 0.8%, services remained flat, and construction fell 0.2%.

WHY IT MATTERS

The figure reduces, for now, the fear of a recession: a decline usually brings fewer hires and more cautious spending. Factories boosted the result, but restaurants, leisure, and construction remain weak.

AND FOR YOUR PORTFOLIO

For the British pocket, the growth avoids a warning sign, but it does not mean that everything is going well. The Bank of England has less pressure to lower rates, so mortgages and loans could remain expensive for longer.