Good morning, and welcome to our rolling coverage of the world economy, financial markets, the eurozone and trade.
The UK economy grew by 0.4% in August, but GDP remains 0.8% below its pre-pandemic level in February 2020, According to the Office of National Statistics. This is slightly less than the 0.5% of economists.
The GDP numbers for July have been revised upwards to a 0.1% decline from 0.1% growth after five consecutive months of growth, mainly due to “revised figures for the manufacturing of motor vehicles, oil and gas, and health production.” measured, due to its improvement” “
Services industries grew 0.3% in August, bouncing back from a 0.1% decline in July, while manufacturing grew 0.5% after a 0.6% decline in July.
Overall production output climbed 0.8%, faster than July’s 0.3% increase, as crude oil and natural gas extraction returned after temporarily closing oil field sites for planned maintenance. Construction continued to shrink by 0.2%, and is now 1.5% below its pre-pandemic levels.
In the three months leading up to August, the economy grew by 2.9% against a forecast of 3% growth.
Paul Dales, UK Chief Economist at Capital Economics, said.
The improvement in August probably had a lot to do with the fading of sobriety from the “pingdemic” of July, which at one time had more than 1 million people self-isolating.
And the recent increase in shortages and the fuel crisis could mean that growth has almost stalled since August.
Office of National Statistics (ONS)
(@we)GDP grew 0.4% in August, but remains 0.8% below its pre-coronavirus peak of February 2020
️ Services up 0.3% (down 0.6% from Feb 2020)
️ Manufacturing up 0.5% (2.4% down from Feb 2020)
️ Construction shrank 0.2% (down 1.5% from February 2020)
Victoria Scholar
(@VictoriaS_ii)UK August #GDP
+2.9% 3M/3M vs Est. 3%
+0.4% m/mv est. 0.5%
+6.9% y/y v est. 6.7%
Services output +7.3% y/y versus estimated 6.2%
Industrial production +0.8% m/m vs. estimated 0.2%
Manufacturing Output +0.5% m/m vs Est 0%
Manufacture output -0.2% m/m v est +0.1%
GBP initial spike reverses lower pic.twitter.com/1elvdCi4rD
ONS has also released trade data – we’ll take a closer look at this in a minute.
Office of National Statistics (ONS)
(@we)Total underlying goods imports fell £1.3bn in August due to a £1.2bn drop in imports from non-EU countries
Total underlying goods exports fell £1.3bn due to a £0.6bn drop in exports to the EU and £0.7bn to non-EU countries https://t.co/svM5XjT4Fm pic.twitter.com/cGVR5ghGYs
In China, export growth unexpectedly picked up in SeptemberDespite power outages, supply constraints and a resurgence of Covid-19 cases, the new data showed. Outbound shipments jumped 28.1% a year ago, up from 25.6% in August, while economists had expected an easing of 21%. Amid falling global demand for durable goods, they still expect export growth to slow in the coming months.
Shares in Asia were mixed, with Japan’s Nikkei down 0.2% and Hong Kong’s Hang Seng down 1.4%, while the Shanghai Composite Index was up about 0.3% and South Korea’s Kospi was up about 1%.
Later today, we will receive US inflation data and minutes of the last meeting of the US Federal Reserve.
work schedule
- 7am BST: UK GDP and business for August
- 7am BST: Germany’s inflation for September (final)
- 10am BST: Eurozone industrial production for August
- 1.30 a.m. BST: US inflation for September (forecast: 5.3%)
- 2pm BST: UK NIESR Monthly GDP Tracker for the Third Quarter
- 3.30 pm BST: Sir John Cunliffe speech, Deputy Governor of the Bank of England for Financial Stability
- 7 p.m. BST: US Federal Reserve Minutes
.