Real GDP rose a modest, but as expected, 0.2 percent on the month in August following stagnation in both June and July. The increase was predominantly driven by a 0.5 percent increase in production output and a 0.4 percent increase in construction, which rebounded from a 0.4 percent decline in July. Services were up a marginal 0.1 percent.

For the three-months to August, GDP also increased 0.2 percent versus the previous period. Services continued to be a significant factor in the overall growth, albeit at a lethargic pace, contributing 0.1 percent. Meanwhile, construction saw a robust 1.0 percent gain while goods production was only flat.

The data show promising signs of recovery in the construction and production sectors but more broadly growth remains driven by services. These latest updates put the UK RPI at 23 and RPI-P at 22, both measures showing overall activity outperforming market expectations and so reducing pressure on the BoE to cut Bank Rate again next month.

UK's GDP is expected to rise 0.2 percent on the month after no change in July.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The monthly report is based on output data only as the income and expenditure series are not available.

GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.