So much for Labour's growth drive! Economy flatlines clawing back just 0.1% in August after going into reverse in July
Labour's much-vaunted growth drive suffered a fresh blow today as figures showed the economy effectively flatlining over the summer. GDP expanded by 0.1 per cent in August - disappointing analysts who had pencilled in a 0.2 per cent boost. And that followed a surprise dip into the red, with the figure for July being revised down from zero to a 0.1 per cent contraction.Although the Office for National Statistics still detected 0.3 per cent growth over three months, the numbers underline the increasingly grim situation confronting Rachel Reeves.The Chancellor has been blaming Brexit, austerity, Nigel Farage and the Tories for the country's lame economic performance as she prepares for another big tax-raising Budget next month.There are warnings she could mount another raid on the scale of her previous fiscal package, which milked an extra £40billion a year out of workers and businesses. Ms Reeves is in Washington for IMF meetings today, where the international body has downgraded UK forecasts and warned over high inflation.A Treasury spokesman said: 'We have seen the fastest growth in the G7 since the start of the year, but for too many people our economy feels stuck. Working day in, day out without getting ahead.'The Chancellor is determined to turn this around by helping businesses in every town and high street grow, investing in infrastructure and cutting red tape to get Britain building.' Real GDP is estimated to be up by 1.3% in August, compared with the same month a year ago Chancellor Rachel Reeves during a visit to the Sipsmith Distillery in Chiswick last Thursday Real GDP grew by 0.3% in the three months to August, compared with the three months to May The human health and social work activities subsector was the largest contributor to the 0.4% growth in services in the three months to August, according to the Office for National Statistics Travel agency, tour operator and other reservation service activities were the largest contributor to a 0.6 per cent fall in consumer-facing services in the three months to August Manufacture of computer, electronic and optical products was the largest positive contributor to manufacturing output in the three months to August, offset by falls in other industriesLiz McKeown, director of economic statistics at the ONS, said: 'Services growth held steady, while there was a smaller drag from production than previously.'Continued strength in business rental and leasing and healthcare were the main contributors to services growth, partially offset by weakness in some consumer facing services, while wholesalers also fared poorly.'Muniya Barua, deputy chief executive of business group BusinessLDN, said: 'These growth figures show that the economy is still struggling to get over the double whammy of April's hike to employer national insurance contributions and significant global uncertainty.'The window of opportunity to achieve the Government's growth mission before the end of this Parliament is closing, so a pro-business Budget is a must for putting the economy back on a surer footing.'The Chancellor should boost tourism by reinstating VAT-free shopping for international visitors, drop plans for a new levy on international students to protect the competitiveness of London's world-class universities and back major infrastructure projects, such as extending the Docklands Light Railway to Thamesmead, to unlock vital investment in new homes.'
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So much for Labour's growth drive! Economy flatlines clawing back just 0.1% in August after going into reverse in July
