The UK returned to growth in August but the “broader picture” is one of a “slowing” economy in recent months, the official statistics body has said.
A bounce back in construction and strong month for accountancy, manufacturers and retail businesses helped boost the economy by 0.2%, after it failed to grow in the previous two months.
But economic growth is weaker compared with the first half of the year, the Office of National Statistics (ONS) said.
Its latest figures come as the government prepares for the Budget at the end of October.
Prime Minister Sir Keir Starmer has warned the Budget will be “painful”, with the government admitting some taxes will rise.
Liz McKeown, director of economic statistics at the ONS, said accounting, bookkeeping and auditing businesses had helped to boost the economy alongside retail and manufacturers in August.
She added construction also bounced back from July’s downturn, with new infrastructure projects starting up, but added: “The broader picture is one of slowing growth in recent months, compared to the first half of the year.”
The Chancellor, Rachel Reeves, who is set to deliver her first Budget on 30 October, said she welcomed the return to growth.
“Growing the economy is the number one priority of this government so we can fix the NHS, rebuild Britain, and make working people better off,” she said.
The latest growth figures come ahead of an International Investment Summit in London next week, where the government will try to attract billions of pounds of investment into the UK.