london skyline

United Kingdom GDP August 2020

United Kingdom: Economic activity growth ebbs in August

GDP expanded 2.1% on a calendar-adjusted month-on-month basis in August (July: +6.4% mom), amid softer growth in industrial production, construction and services. The slowdown was to be expected given several months of rapid recovery, and GDP is now 9.2% below its pre-Covid-19 level.

On a rolling quarterly basis, GDP grew 8.0% in June-August, rebounding notably from May-July’s 6.8% fall and marking the best result on record.

Looking ahead, the economy is set to slow sharply heading into Q4 following the announcement of new lockdown measures in early October, which will hit the hospitality sector in particular. The sagging labor market and Brexit uncertainty will further weigh on momentum.

According to economists at Berenberg:

“[A] robust Q3 gives way to serious virus risks […] Amid mounting restrictions, and in line with our latest revisions to the Eurozone outlook, we downgrade our Q4 call to 2.0% qoq from 2.5% previously.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest