UK economy unexpectedly grows in August despite fall in consumer spending

The UK economy grew by 0.1% in August, contrary to economists’ forecast of a 0.1% contraction, official figures showed. Growth slowed from 0.4% in July. Production output rose 0.8%, led by manufacturing, while services recorded no growth and construction fell 0.2%. Consumer-facing services declined 0.3%, with food and drink services among the areas weakening as higher fuel and energy costs squeezed households. GDP expanded 0.7% over the three months to August, offering the government a modest boost before its upcoming budget.