Source: BBC News
The UK’s economy grew faster than expected in July, easing fears that it could fall into recession.
The economy grew 0.3% in July, the UK’s official statistics body said, helped by the dominant services sector.
Growth was flat over the three months to July, but this was an improvement on the 0.2% contraction seen in the April-to-June quarter.
This contraction, coupled with some weak business surveys, raised concerns the UK was heading for recessio
An economy is generally deemed to be in recession if it contracts for two quarters in a row.
However, while growth in the services sector – which accounts for about 80% of the UK economy – helped to drive July’s stronger-than-expected growth figure, the Office for National Statistics (ONS) warned that the sector remained weak.
“While the largest part of the economy, the services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019,” the ONS said.
The pound rose in reaction to the figures, rising 0.6% against the dollar to $1.2357.