UK economic growth stalls in August, trade deficit widens

  • by Ahmed Mamdouh
  • October 10, 2018, 8:49 AM
  • 496 Views
 57       43      

The pace of growth in Britain’s economy stalled in August, while the trade deficit widened data from the ONS showed on Wednesday.

U.K. GDP signaled a halt in expansion in the month of August, compared to an upwardly revised 0.4 percent growth in July. Analysts had called for a 0.1 percent growth.

Yet, the growth in the June-August quarter was 0.7 percent, unchanged from the May-July period.

“The economy continued to rebound strongly after a weak spring,” said the head of GDP at the ONS, Rob Kent-Smith.

The International Monetary Fund downgraded U.K. growth forecasts for this year to 1.1 percent from its previous estimates of 1.3 percent growth.

The overall trade in goods shortfall widened to 11.2 billion pounds in August from a previous deficit of 10 billion pounds.

Other reports showed that U.K. manufacturing production dipped 0.2 percent and construction output plunged 0.7 percent in July, while industrial production advanced 0.2 percent.

As of 08:48 GMT, the pound snapped most of its earlier gains to trade at $1.3153, compared to the session’s high at $1.3185.

Related Articles