The UK economy grew for the first time this August after two flat months, according to the Office for National Statistics (ONS).

According to August statistics, gross domestic product (GDP) was up by 0.2% in August, in a positive contradiction to the lack of any growth seen in June and July.

The uptick should come as a relief to the nation, as well as to Chancellor Rachel Reeves ahead of her inaugural autumn budget.

While all main sectors in the economy saw growth over the month of August, the broader picture, according to ONS director of economic statistics Liz McKeown, shows “slowing growth in recent months, compared to the first half of the year.

“In August, accountancy, retail and many manufacturers had strong months while construction also recovered from July’s contraction,” she said.

“These were partially offset by falls in wholesaling and oil extraction.”

The main contributor to growth – the services sector – was up by 0.1% in August, carrying on from its similar rise in July.

The productions sector, while smaller, saw a bigger increase, rising 0.5% in August despite a 0.7% contraction the previous month.

Meanwhile, construction output rose 0.4% in the month of August, following a fall of 0.4% in July, continuing on its overall 1% growth in the three months coming up to August.

“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,” chancellor Reeves said.

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“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.”

In the month of August, business confidence in Scotland appeared high, though it later took a downturn across the UK.

Announcements from the new Labour government about tough decisions coming ahead in the Autumn statement have stoked fears across the UK economy, as they already brace for rising energy costs across the colder months.