UK GDP rose 0.1% in August against forecasts of a 0.1% fall, carried by pharmaceuticals and software while services stalled. Gilts rallied anyway, with the 10-year yield near 5.32%, as markets pared back Bank of England hike bets to a single November rise.
ONS data marked the eighth straight three-month expansion, with production's rebound offsetting stalled services as markets pared four-hike Bank of England pricing after Huw Pill. Source
UK output grew in August when the consensus was looking for a small contraction. The Office for National Statistics (ONS) estimated that real GDP rose 0.1% in August, against a Reuters consensus of −0.1% and a previous 0.4%. July was unrevised, and June moved up to 0.4% from 0.3%. Annual growth of 2.1% (forecast 1.7%, previous 1.8%) is the fastest since August 2022. Output in the three months to August rose 0.7% (forecast 0.5%, previous 0.5%), the eighth straight three-month expansion.
