Sluggish UK economy only stages partial bounceback in August

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Britain's economy partially recovered in August after a sharp drop in July but the bigger picture remained one of only sluggish growth after last year's surge in inflation and 14 back-to-back interest rate hikes by the Bank of England.

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12 Oct 2023

Official data showed economic output expanded by 0.2% in August from July, matching the median forecast in a Reuters poll of economists.

But July's drop, when rainy weather and strikes by teachers and other workers hit the economy, was estimated to have been steeper than first thought, falling by 0.6% rather than the initial estimate of 0.5%.

The last time the economy shrank by more than that on a month-on-month basis was in June last year which reflected the impact of a one-off holiday to mark the late Queen Elizabeth's 70 years on the throne.

The International Monetary Fund this week forecast Britain would have the slowest growth among the Group of Seven nations in 2024.

The signs of a slowdown prompted the BoE to refrain from raising borrowing costs again last month.

«The UK economy is holding up but remains in a