BCN-47 UK economy grinds to halt in August

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BCN-47

BRITAIN-ECONOMY-GROWTH-BREXIT-LABOUR

UK economy grinds to halt in August

LONDON, Oct 10, 2018 (BSS/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.”

BSS/AFP/SR/1800 HRS