The British economy returned to growth again during today's data as expected, which revived hopes for a soft landing from high inflation that stifled activity.
The office for National Statistics said on Friday that the economy expanded by 0.2% on a monthly basis in August, which is better than the recession in June and July, economists polled by The Wall Street Journal were expecting a 0.2% increase in GDP, and the UK economy is expected to expand by 0.2% in the three months to August compared to the three months to May.
All major sectors of the economy grew in August, but the broader picture is a slowdown in growth in recent months compared to the first half of the year.
The expansion in August strengthens confidence that the country may succeed in a soft landing, when the economy is recovering from a period of high inflation and high interest rates without a noticeable rise in unemployment.
The British central bank also cut its key interest rate by a quarter of a point from its 16-year high last August, but it is nevertheless easing interest rates at a slower pace than in the United States and Europe, where prices in the services sector remain rather high.
The Bank of England also expects GDP to expand by 0.3% in the third quarter as a whole.
