Services sector powers growth in economy
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.
Mike Randall, chief executive of Simply Asset Finance said: “The UK is continuing its road to recovery as positive GDP growth shows signs that confidence is returning to the market
“In fact, Lloyds Bank’s latest Business Barometer observes that business confidence has remained above 22-year average, while we continue to observe our customers investing in new equipment, staff and resources to capitalise on the year ahead. In September alone, we saw positive year-on-year growth for our lending services, and only expect this to grow in Q4 this year.”
“As the economy recovers, it’s likely that SMEs will look to seize more opportunities to fuel their innovation. Lenders should actively engage in conversations with businesses to understand their ambitions, while providing them with tailored financing solutions to help them on the path to growth.”
