MNI BRIEF: UK August GDP Higher; July Revised to Show Decline

UK GDP grew by 0.4% in August, slightly slower than expectations, but output in July contracted after a revision, dropping by 0.1% versus the previously-reported 0.1% rise. That lease output 0.8% below February 2020 levels -- helped by the earlier upward revision to Q2. The data will raise questions over whether the UK recovery came to an end in Q3, which September likely to be very soft, owing to petrol shortages and a sharp rise in natural gas prices that dampened some industrial activity.

Services expanded by a slower-than-expected 0.3% in August, lifted by a 1.2% rose in consumer-facing activities. All other services rose by just 0.1%. Manufacturing increased by 0.5%, lifting production by 0.8%, while construction declined by 0.2%. The downward revision in July stemmed from downwardly-revised data for motor vehicles oil and gas. Manufacturing declined by 0.6% in July, compared to the originally-reported outturn of no term.