The UK economy grew in August after it was flat in the previous two months, according to the latest official figures.
The Office for National Statistics (ONS) said gross domestic product (GDP) recorded 0.2% growth in August, up from no growth in June or July.
It was in line with economist predictions but is nevertheless a boost for Chancellor Rachel Reeves ahead of this month’s autumn Budget.
“In August, accountancy, retail and many manufacturers had strong months while construction also recovered from July’s contraction.
“These were partially offset by falls in wholesaling and oil extraction.”
The services sector was the main contributor to growth, up 0.1% in August after a similar rise in July.
Meanwhile, the smaller production sector swung to 0.5% growth after a 0.7% contraction in July, revised from a 0.8% estimate in last month’s figures.
Chancellor Rachel Reeves said: “It’s welcome news that growth has returned to the economy.
“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.
“While change will not happen overnight, we are not wasting any time on delivering on the promise of change.
“Next week hundreds of the world’s biggest businesses will come to Britain as we deliver on our promise to bring investment, growth, and jobs back to every part of the country.”
Bank of England rate setters are next set to meet in November, where most economists have predicted another quarter-point rate cut.
“While interest rates are still likely to fall in November, these positive figures mean it’s not quite a done deal by giving the more hawkish rate setters enough encouragement over economic conditions to hold off voting to relax policy.”
Several business surveys have also shown a fall in confidence in September, after Ms Reeves warned of “tough decisions” at the upcoming Budget.
Luke Bartholomew, deputy chief economist at asset manager Abrdn, added: “After a strong performance over the first half of the year, the economy was always likely to slow somewhat over the second half.
“But the worry is that speculation about the upcoming Budget will cause an even more pronounced slowdown.
“These figures confirm a reassuring rally in output, as easing inflation and better weather helped return the economy to growth by reviving activity in key sectors, including retail and manufacturing.
