UK economy contracts in August but July growth upgraded

By The Associated Press | Posted - Oct. 10, 2019 at 4:19 a.m.

LONDON (AP) — Official figures show that the British economy contracted 0.1% during August but that was offset by an equivalent upward revision to July's growth rate to 0.4%.

As a result of its latest update, the Office for National Statistics said the British economy picked up steam — three-month growth from the previous three-month period picked up to 0.3%, ahead of the consensus in financial markets of 0.1%.

With Brexit uncertainty acute, economists think growth will remain muted. Still, the fact that underlying growth may be a tad stronger than anticipated may ease the pressure on the Bank of England to cut its main interest rate from 0.75%.

Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, said Thursday's figures undermine the case for an imminent cut before more clarity over Brexit emerges.

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