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UK economic growth August 2024

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Alexander Spatari | Moment | Getty Images

LONDON — The U.K. economy grew 0.2% in August on a month-on-month basis, flash figures published by the Office for National Statistics showed Friday.

Gross domestic product (GDP) came in line with the expectations of economists polled by Reuters, who had forecast growth of 0.2%.

Britain’s economic growth was up 0.2% in the three months to August, compared with the 0.5% recorded in the three months to July.

The U.K.’s dominant services sector showed slight growth of 0.1% in the month to August, while production and construction output rose by 0.5% and 0.4%, respectively.

The country’s economy flatlined in June and July, after previously recording modest but steady expansion in almost every month this year. Britain emerged from a shallow recession at the start of the year.

The reading comes as Finance Minister Rachel Reeves is set to deliver her Autumn Budget at the end of this month, with tax hikes and spending cuts expected as she tries to overcome an estimated £22 billion ($29 billion) black hole in the public finances. The Conservative opposition party, which led the country until snap elections earlier this year, deny the gap.

Reeves has also hinted that she may change the country’s debt rules to free up more cash to spur investment.

The government has said the plans are part of its vision for an era of “national renewal,” as it attempts to inject some optimism into the public pysche after painting a gloomy picture over the state of the economy.

This is a breaking news story. Please check back for updates.

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Economics

What would Robert Kennedy junior mean for American health?

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November 15, 2024

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AS IN MOST marriages of convenience, Donald Trump and Robert F. Kennedy junior make unusual bedfellows. One enjoys junk food, hates exercise and loves oil. The other talks of clean food, getting America moving again and wants to eliminate oils of all sorts (from seed oil to Mr Trump’s beloved “liquid gold”). One has called the covid-19 vaccine a “miracle”, the other is a long-term vaccine sceptic. Yet on November 14th Mr Trump announced that Mr Kennedy was his pick for secretary of health and human services (HHS).

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Economics

UK economy ekes out 0.1% growth, below expectations

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2 hours ago

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November 15, 2024

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Bank of England in the City of London on 6th November 2024 in London, United Kingdom. The City of London is a city, ceremonial county and local government district that contains the primary central business district CBD of London. The City of London is widely referred to simply as the City is also colloquially known as the Square Mile. (photo by Mike Kemp/In Pictures via Getty Images)

Mike Kemp | In Pictures | Getty Images

The U.K. economy expanded by 0.1% in the third quarter of the year, the Office for National Statistics said Friday.

That was below the expectations of economists polled by Reuters who forecast 0.2% gross domestic product growth on the previous three months of the year.

It comes after inflation in the U.K. fell sharply to 1.7% in September, dipping below the Bank of England’s 2% target for the first time since April 2021. The fall in inflation helped pave the way for the central bank to cut rates by 25 basis points on Nov. 7, bringing its key rate to 4.75%.

The Bank of England said last week it expects the Labour Government’s tax-raising budget to boost GDP by 0.75 percentage points in a year’s time. Policymakers also noted that the government’s fiscal plan had led to an increase in their inflation forecasts.

The outcome of the recent U.S. election has fostered much uncertainty about the global economic impact of another term from President-elect Donald Trump. While Trump’s proposed tariffs are expected to be widely inflationary and hit the European economy hard, some analysts have said such measures could provide opportunities for the British economy.

Bank of England Governor Andrew Bailey gave little away last week on the bank’s views of Trump’s tariff agenda, but he did reference risks around global fragmentation.

“Let’s wait and see where things get to. I’m not going to prejudge what might happen, what might not happen,” he told reporters during a press briefing.

This is a breaking news story. Please refresh for updates.

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Economics

Senate Republicans flex their independence

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16 hours ago

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November 14, 2024

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MIKE JOHNSON, the speaker of the House of Representatives, became all but guaranteed to keep his job for another two years after receiving Donald Trump’s backing on November 13th. Yet Mr Trump conspicuously withheld an endorsement in another congressional leadership contest the same day, and Senate Republicans elected John Thune as their next majority leader. The South Dakotan now has the unenviable task of managing a busy legislative schedule while also trying to reconcile the demands of his own caucus, an unruly lower chamber and an emboldened and mercurial president.

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