Services sector powers rise in GDP

GDP grew by 0.2% in August, according to figures released by the Office for National Statistics (ONS) this morning (October 12).

The rise was powered by the services sector, which grew by 0.4%, but tempered by falls in production (0.7%) and construction (0.5%)

Darren Morgan, director of economic statistics at ONS, said: “Our initial estimate suggests GDP grew a little in August, led by strong growth in services, which was partially offset by falls in manufacturing and construction.

“With services, education returned to normal levels, while computer programmers and engineers both had stron months.

“Across the last three months as a whole, the economy has grown modestly, led by car manufacturing and sales, and construction.”

The underlying total trade deficit narrowed £3.5bn to £10.4bn in the three months to August, as imports fell by more than exports.