UK economy improves slightly in August
Wholesale and retail trade; repair of motor vehicles and motorcycles also grew in August 2023, by 0.6%
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The UK economy is estimated to have grown by 0.2% in August 2023, following a fall of 0.6% in July 2023, according to the latest figures from the ONS.
Looking at the broader picture, GDP showed 0.3% growth in the three months to August 2023 when compared with the three months to May 2023.
The improvement was primarily driven by a 0.4% increase in the services sector. The largest drivers of the growth in monthly services output were professional, scientific and technical activities, and education.
Professional, scientific and technical activities grew by 1.2% in August 2023, following on from a 0.5% growth in July 2023. The architectural and engineering activities; technical testing and analysis industry was the largest contributing industry, growing by 4.7% in August, followed by legal activities, which grew by 2.3%. Education grew by 1.6% in August 2023, after a fall of 1.7% in July 2023.
Meanwhile, Output in consumer-facing services fell by 0.6% in August 2023 and remains 4.3% below pre-coronavirus (COVID-19) levels (February 2020), while all other services were 7.0% above (Figure 4). The largest negative contributions in August 2023 came from the sports activities and amusement and recreation activities industry (down 10.8%) and other personal service activities (down 4.3%).
The largest positive contributions to consumer-facing services in August 2023 came from accommodation (up 3.4%) and buying and selling, renting and operating of own or leased real estate, excluding imputed rent (up 0.7%).
Wholesale and retail trade; repair of motor vehicles and motorcycles also grew in August 2023, by 0.6%, with the largest contributor being the wholesale trade, except of motor vehicles and motorcycles industry’s growth of 1.1% in August.
The largest downward contribution was from arts, entertainment and recreation, which fell by 7.4% in August 2023, following 6.8% growth in July 2023, its largest growth since May 2021. Sports activities and amusement and recreation activities fell by 10.8%, after growth of 12.2% in July, and creative, arts and entertainment fell by 7.7%, after growth of 4.6% in July. In the three months to August 2023, compared with the three months to May 2023, arts, entertainment and recreation has grown by 2.7%.
