UK economy picks up in August as GDP grows 0.4%

GDP remains below pre-pandemic level

Bars and festivals lifted the UK economy as GDP grew by 0.4% in August, but remained 0.8% below the pre-pandemic level of February 2020, according to the Office for National Statistics (ONS).

The latest snapshot showed activity in the accommodation and food service sectors, as well as arts, entertainment and recreation, contributed most to growth in the UK's dominant service sector, which makes up about 80% of the British economy. The service industries grew by 0.3% in August, bouncing back from a 0.1% drop in July, while manufacturing expanded by 0.5% following July's 0.6% decline. Overall production output climbed 0.8%, accelerating from July's 0.3% rise, as crude oil and natural gas extraction bounced back following a temporary closure of oil field sites for planned mai...