UK economy grew 0.1% in August, beating expectations Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points On an annual basis, GDP grew by 2.1% in August, beating economists’ expectations of 1.7%. The U.K. is currently grappling with a cost-of-living crisis sparked by sticky inflation and surging energy costs in the wake of the Russia-Ukraine war and the Iran war. Production growth offsetting weak output in services and construction. Economists polled by Reuters had been expecting GDP to shrink by 0.1% between July and August. But the reading still marked a slowdown in momentum for British gross domestic product, which grew by 0.4% month-on-month in June and July. On an annual basis, GDP grew by 2.1% in August, beating economists’ expectations of 1.7%. The ONS said it marked the highest year-on-year GDP reading since August 2022. The British pound jumped 0.4% against the U.S. dollar following the release, while yields on U.K. government bonds — known as gilts — fell across the curve.
Does this UK GDP growth mean lower energy bills? No, the modest growth comes amid ongoing energy cost pressures from global conflicts.