In the three months to August, the economy grew by 0.7 per cent, while production and construction output fell by 0.2 per cent and 0.1 per cent respectively.
Dr Ruth Fleet, senior policy advisor of Greater Birmingham Chambers of Commerce (GBCC), said: “The stronger than anticipated GDP growth in August comes off the back of eight consecutive months of GDP growth in the UK, but growth is still marginal.
“While August's increase was driven by a recovery in production output, the broader picture remains one in which services are doing most of the heavy lifting for the economy.
“Over the three months to August, services output grew while both production and construction contracted.
“The Chancellor spoke a few weeks ago about a ‘new age of industrialisation’ in the UK and building 1.5 million new homes was also a manifesto pledge for Labour at the last election, but this data reveals there is still some distance between those ambitions and the reality that businesses are facing.
“Manufacturers and construction businesses are still struggling to grow under the concurrent pressures of rising labour costs, difficulties in recruiting skilled workers, spiralling energy and fuel costs, and geopolitical uncertainty.
“Ahead of the Budget, Chambers across the UK are calling for a cut in employer National Insurance contributions for under-25s, action on energy bills and business rates, and better, more consistent export support to unleash the growth that businesses are striving for.”
