UK economy shows surprise contraction in August

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The UK’s economy contracted in August, surprising economists who had forecast zero growth.

The Office for National Statistics said the economy contracted by 0.1% during the month, after growing by an upwardly-revised 0.4% in July.

However, the economy grew in the three months to the end of August, indicating that the UK can avoid a recession.

The ONS said weak manufacturing was offset by buoyant TV and film production.