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UK economy contracts 0.1% in August

UK economy contracts in August

The U.K. economy reported a contraction of 0.1 percent in the month of August, but the three-month growth was stronger than expected.

The Office for National Statistics data released on Thursday signaled the British economy witnessed its first monthly contraction since April.

Manufacturing production shrank 0.7 percent in August, confronting economists’ anticipations of 0.1 percent increase. Industrial production fell 0.6 percent, while construction output showed an unexpected 0.2 percent surge.

In the three months ended August, the economy grew by 0.3 percent after upside revisions to June and July growth readings.

The services sector expanded by 0.4 percent on the quarterly basis, but was flat in August, the ONS data showed.

As of 08:48 GMT, the pound traded higher for the first time in four sessions at $1.2235, yet still set for a weekly loss amid no-deal Brexit concerns.

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