The British economy expanded by 0.1 percent in August, according to official figures, defying market expectations of a slight contraction amid high energy prices and borrowing costs.
Data released by the Office for National Statistics showed gross domestic product grew by 0.7 percent across the three months to August. The monthly uptick followed a 0.4 percent increase in July, while growth for June was revised upwards from 0.3 percent to 0.4 percent.
Economic growth in August was bolstered by an upturn in the production sector, which includes manufacturing, oil and gas extraction, and energy supply. In contrast, the dominant services industry remained flat during the month, and construction activity contracted.
Liz McKeown, director of economic statistics at the statistical agency, noted that computer programming was the largest driver of growth over the three-month period, even as production and construction shrank across that broader span. Paul Dales, chief UK economist at Capital Economics, said the economy was showing "remarkable resilience to higher energy prices and borrowing costs," though he cautioned that an expected increase in inflation could still slow growth.
The data arrived two weeks before Chancellor John Healey delivers his first Budget. Attending the annual meeting of the International Monetary Fund in Bangkok, Healey said: "Despite conflicts in the Middle East and Europe hitting people across the world, today's figures offer more proof of Britain's resilience in the face of these global shocks."
The performance follows an upgrade by the IMF to its annual forecast for the UK economy. IMF managing director Kristalina Georgieva noted earlier in the week that the country had "a bit of a better growth prospect" compared with other G7 nations while commending government plans to lower debt levels.
