UK economy sees surprise growth in August ahead of Healey's first Budget

The UK's economy recorded surprise growth in August despite the impact of rising energy prices and borrowing costs.

Official figures showed the economy expanded by 0.1% in the month, defying analysts' expectations of a slight contraction.

It means the economy grew by 0.7% in the three months to August, and follows an upgrade to this year's forecast for the UK economy from global watchdog the International Monetary Fund (IMF).

Chancellor John Healey, who will deliver his first Budget in two…