UK economy picks up in August, underpinning BoE rate hike bets
- UK GDP +0.4% m/m in August after 0.1% fall in July
- England mostly free of COVID-19 restriction in August
- Markets see BoE raising rates by the end of December
- ONS says chip shortages eased, lack of building materials worse
- Economy to face headwinds from gas price surge, labour shortages
LONDON, Oct 13 (Reuters) – Britain’s economy returned to growth in August after contracting for the first time in six months in July, keeping intact financial market bets that the Bank of England will begin raising interest rates before the end of the year.
Gross domestic product grew by 0.4% in August – a shade under market expectations in a Reuters poll of economists – after it was revised down to show a drop of 0.1% in July when staff absences linked to the Delta variant of COVID-19 peaked.
“The economy picked up in August as bars, restaurants and festivals benefited from the first full month without…