WORLD UK economy grinds to halt in August

WORLD

UK economy grinds to halt in August

AFP

19:58, October 10, 2018

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Britain’s Brexit-facing economy ground to a shuddering halt in August, hit by weaker hotel activity. Above, a hotel in Milton Keynes outside London. (Photo: AFP)

Britain's Brexit-facing economy ground to a shuddering halt in August, hit by weaker hotel and restaurant activity, official data showed Wednesday.

Six months before Britain is due to leave the European Union, gross domestic product (GDP) flatlined to register zero growth, the Office for National Statistics said in a statement.

That followed 0.4-percent expansion in July and undershot analysts' already modest consensus forecasts for anaemic growth of 0.1 percent.

However, GDP climbed 0.7 percent in the three months to August compared with the previous three months. That outpaced market expectations of 0.6 percent.

"The economy continued to rebound strongly after a weak spring, with retail, food and drink production and housebuilding all performing particularly well during the hot summer months," said Rob Kent-Smith, head of GDP at the ONS.

"However, long-term growth continues to lag behind its historical trend."

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