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Chancellor John Healey was handed some positive news ahead of the Budget with new figures showing the UK\u2019s economy grew slightly in August.<\/p>\n
The Office for National Statistics said the economy expanded by 0.1% in the month, defying some expectations of no growth or a decline. Numerous economists were expecting it to fall between 0.1% and 0.3%.<\/p>\n
This latest rise in GDP follows growth of 0.4% in July, as well as positive upgrades to the outlook for Britain\u2019s economy from global watchdog the International Monetary Fund (IMF).<\/p>\n
UK growth is even better on a three-month basis, as ONS figures show it rising 0.7%. Previously positive figures have also been revised upwards \u2013 the previous three month figure up to July was an even better 0.5%, the ONS said.<\/p>\n
Mr Healey said:\u00a0\u201cThese GDP figures are welcome news. Despite conflicts in the Middle East and Europe hitting people across the world, today\u2019s figures offer more proof of Britain\u2019s resilience in the face of these global shocks.\u00a0\u00a0<\/p>\n
\u201cThis week the IMF have upgraded UK growth for 2026 and said that our fiscal discipline stands out with the lowest deficit in the G7 forecast by 2029.<\/p>\n
\u201cToday, I\u2019m discussing with international finance ministers what we can do to limit the impact of global events on the UK.\u201d<\/p>\n
Ben Jones, CBI senior lead economist, said:\u202f\u202f\u202f\u201dThe economy has generally performed well so far this year. But amid rising inflation and tightening financial conditions, maintaining that momentum does look difficult, with a more subdued end to 2026 in prospect.\u00a0<\/p>\n
\u201cThe messages coming from firms tell a story of an economy marked by contrasts. The strength of demand varies across sectors.<\/p>\n
\u201cThe Autumn Budget provides an opportunity for the government to build on the economy\u2019s resilience by giving businesses the confidence and certainty they need to invest, expand and create jobs.\u201d<\/p>\n
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