According to data released by the United Kingdom's Office for National Statistics, the country’s GDP rose by 0.4% in August (month-on-month), below expectations of 0.5% and above July’s 0.1% drop.
According to the estimations of the ONS, this brought the GDP to 0.8% below pre-pandemic levels.
In monthly terms, industrial production rose by 0.8%, above expectations of 0.2% and the previous month’s 0.3%. In annual terms, industrial production rose by 3.7%, above expectations of 3% but below the previous month’s 4.4%.
Similarly, manufacturing production advanced by 0.5% (month-on-month), beating expectations that it would remain in line with July’s 0.6%. In annual terms, manufacturing production advanced by 4.1%, below expectations of 6% and July’s 6.1%.
The trade balance with non-EU countries showed a deficit of £8.395 billion, greater than expectations of a £6.524 billion deficit and the previous month’s deficit of £8.106 billion. The data registered a £14.927 billion deficit in the goods trade balance, above expectations of £12 billion and July’s £14.095 billion.
The United Kingdom's economy has been recovering, though the spread of the delta variant, together with higher-than-expected inflation levels, have put the recovery process at risk.
Since the beginning of the pandemic, 8,231,437 COVID-19 cases have been reported in the United Kingdom, included 137,944 related deaths. The government is currently pushing a massive vaccination campaign. So far, 94.4 million doses have been distributed among the local population, with 45.2 million individuals now fully vaccinated, accounting for 67.2% of the total population.
Since the beginning of the week, the British pound has dropped by 0.04% against the US dollar, giving up part of the previous week's gains. On Tuesday, the pound dropped by 0.07% against the US dollar, losing ground for the third consecutive day and closing the session at the 1.3585 level.
By 9:58 GMT, the pound went up by 0.34% against the greenback to the 1.3632 level.