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MNI BRIEF: UK GDP Falls In August As Growth Stalls

amends month of previous data in para 2

(MNI) LONDON

UK GDP fell in August, defying analyst expectations of a modest increase, as both production and services indicators declined, the Office for National Statistics said Wednesday.

Growth fell 0.3% m/m, after a downwardly revised 0.1% gain in July. According to the ONS, September -- assuming no revisions to July or August -- will need to see month-on-month growth of 1.1% to ensure flat growth overall in the third quarter. Over the three months to August, the economy declined 0.3%.

This is in line with Bank of England estimates for a quarter of contraction in Q3. However, barring any surprise downward revisions to Q2, there will be no early technical recession for the new UK government to explain away. With inflation still the main concern for the BOE, lower growth will be a concern, but not the policy driver into the November meeting

There was some upside strength, notably from a stronger than normal summer performance from many professional services such as lawyers, accountants and architects, the ONS said,

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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