"We are not slipping on growth" as GDP growth beats forecast

The Bank of England is likely going to beat the economist panel into submission over their consensus estimate here.

1.4% is way too American an estimate here — absent of the estimate, 1% YoY amidst a change of government is objectively good (and this is despite not because of this government).

If we take services, which have been quite buoyant for a while, there is a return to the mean relationship happening here, which in my view is natural.

We are not slipping on growth — we’ve just had a very exuberant estimation here.

I think the Bank of England will be ok with this and it will not change their plans at all with regards of their rate cutting path, but it might make communication a little more awkward when they need to talk about growth next.

The UK economy shows fiscal fortitude with 0.2% growth in August, but the stumbling services sector raises concerns about the sustainability of the recovery. This return to growth, while modest, serves as a beacon of hope in an otherwise turbulent economic landscape. However, while the headline figure suggests a potential cause for optimism, the services sector, which accounts for about 80% of the UK economy, grew by a mere 0.1% in August, raising concerns about the sustainability of the UK's economic recovery. This sluggish performance could have far-reaching implications, potentially influencing the pace of future interest rate cuts, especially if it signals a broader economic slowdown. The challenge now for policymakers will be to address the underlying weaknesses in the services sector while capitalising on strengths in other areas of the economy, such as manufacturing.