UK

UK Economy Grows 0.1% in August as Manufacturing and Industrial Output Beat Expectations

The U.K. economy expanded 0.1% month over month in August, outperforming expectations for a 0.1% contraction, although growth slowed from the previous month’s 0.4% increase.

Manufacturing production rose 1.2% month over month, significantly stronger than the 0.1% decline expected by economists and slightly above the previous month’s 1.0% gain.

Industrial production also surprised to the upside, increasing 0.8% versus expectations for a 0.1% decline and accelerating from 0.3% previously.

The trade deficit narrowed to £18.01 billion, better than the £21.90 billion deficit expected and an improvement from the previous reading shown in the data.

Overall, the figures point to more resilient U.K. economic activity than expected, particularly in manufacturing and industrial production.
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UK Retail Sales Growth Accelerates to 1.0% in September

UK retail sales increased 1.0% year over year in September, according to the BRC Retail Sales Monitor, exceeding expectations for a 0.8% gain and improving from 0.5% growth in the previous month.

The stronger reading suggests consumer spending gained momentum during September despite continued pressure from elevated borrowing costs and broader cost-of-living concerns.
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UK House Prices Stabilize in September as Mortgage Rate Holds at 6.58%

UK house prices were unchanged month over month in September, matching market expectations and improving from a 0.3% decline in August.

On an annual basis, the Lloyds House Price Index was also flat at 0.0%, compared with a 0.4% decline in the previous month. The figures suggest the housing market stabilized in September after recent weakness.

Separately, the average UK mortgage rate remained unchanged at 6.58% in September.

The combination of stable house prices and unchanged mortgage costs points to a relatively steady housing backdrop, although elevated borrowing rates continue to constrain affordability and demand.
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The UK S&P Global Construction PMI rose to 46.1 in September from 44.3 in August, beating expectations for a reading of 45.0.

Despite the improvement, the index remained below the 50 threshold that separates expansion from contraction, indicating that construction activity continued to decline during the month.

The stronger-than-expected reading suggests the pace of contraction eased in September, offering a modestly more positive signal for the UK construction sector.
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UK Private-Sector Growth Slows in September Despite Better-Than-Expected PMI Readings

UK business activity continued to expand in September, although momentum weakened from the previous month.

The S&P Global Composite PMI came in at 52.0, above the 51.7 market consensus but down from 52.5 in August.

The Services PMI showed a similar pattern, registering 52.1 versus expectations of 51.7, while also easing from 52.5 previously.

Both indexes remained above the 50 threshold, indicating continued expansion in the UK private sector. However, the decline from August suggests growth lost some momentum heading into the fourth quarter.
UK House Prices Fall in September as Manufacturing Growth Remains Modest

UK house prices weakened in September, with the Nationwide House Price Index falling 0.2% month over month after rising 0.2% previously. Economists had expected prices to remain unchanged.

On an annual basis, house-price growth slowed to 0.8% from 1.6%, also missing the 1.3% consensus. The figures suggest that momentum in the UK housing market softened during the month.

Manufacturing activity, meanwhile, remained in expansion territory. The S&P Global Manufacturing PMI rose to 51.9 in September from 51.7, though it came in just below the 52.0 forecast.

Overall, the data present a mixed picture for the UK economy. Manufacturing continues to expand modestly, while the housing market shows signs of renewed weakness. For markets, softer house-price growth may reinforce expectations of subdued domestic demand, while the PMI reading suggests the industrial sector is still avoiding contraction.
UK Economy Grows 0.5% in Q2, Slightly Beating Expectations

The UK economy expanded 0.5% quarter over quarter in the second quarter, slightly above the 0.4% expected by economists, though slower than the previous quarter’s 0.6% growth.

On an annual basis, GDP grew 1.4%, also beating the 1.2% consensus and accelerating from 0.9% previously.

Business investment rose 1.8% quarter over quarter, marginally above expectations of 1.7%, but slowed from a revised 3.0% increase in the previous period.

The figures point to a somewhat stronger-than-expected growth backdrop for the UK economy, with both headline GDP and business investment exceeding forecasts.
UK Private-Sector Growth Slows in September as Services Lose Momentum

UK business activity expanded at a slower pace in September, with weaker services growth offsetting a modest improvement in manufacturing.

The S&P Global Composite PMI fell to 51.7 from 52.5, missing the 52.0 consensus but remaining above the 50 threshold that separates expansion from contraction.

Services PMI also declined to 51.7 from 52.5 and came in below expectations of 52.0, pointing to softer momentum in the dominant services sector.

Manufacturing provided a more positive signal. The Manufacturing PMI rose to 52.0 from 51.7, beating the 51.5 forecast and indicating a somewhat faster pace of factory-sector expansion.

Overall, the data suggest the UK economy remained in expansion territory in September, but growth momentum weakened as softer services activity outweighed the improvement in manufacturing.
UK Public Sector Borrowing Falls Sharply in August but Still Exceeds Forecast

UK public sector net borrowing fell to £1.8 billion in August from £12.8 billion previously, showing a significant month-over-month improvement in government finances.

However, the result was still weaker than the flat reading expected by markets, indicating that the public sector continued to require additional borrowing despite the sharp decline from July.

Separately, the Public Sector Net Cash Requirement came in at £10.01 billion, compared with a negative £26.81 billion previously, reflecting a substantial swing in the government’s cash position.
UK House Prices Rebound in September as Monthly Asking Prices Rise 0.7%

UK house prices showed signs of improvement in September, with the Rightmove House Price Index rising 0.7% month over month after a 2.0% decline in August.

On an annual basis, asking prices were still 0.8% lower than a year earlier, but the decline narrowed from 1.0% previously.

The data suggest the housing market regained some momentum at the start of autumn, although year-over-year prices remain slightly below 2025 levels.

The monthly rebound may reflect seasonal improvement in housing activity, but affordability constraints and borrowing costs are likely to remain important factors for buyers and sellers in the coming months.
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