(fxcue news) - The UK economy returned to growth in August but the pace of expansion was weaker than in the first half of the year, official data revealed Friday. The real economy grew 0.2 percent in August after showing nil growth in July and June, the Office for National Statistics said. The rate came in line with expectations. In the three months to August, real GDP advanced 0.2 percent compared to the three months to May and gained 0.8 percent from the same period last year. UK Chancellor Rachel Reeves said it is welcome news that growth has returned to the economy. "While change will not happen overnight, we are not wasting any time on delivering on the promise of change," she said. Although the economy grew in August, the pace of growth is slowing after a short-lived burst of activity earlier in the year, ING economist James Smith said. ONS director of economic statistics Liz McKeown said all the main sectors of the economy grew in August but the broader picture is one of slowing growth in recent months, compared to the first half of the year. On the production-side, the dominant service sector edged up 0.1 percent on month, the pace of growth as seen in July. At the same time, industrial output rebounded 0.5 percent, following a revised fall of 0.7 percent in the previous month and also came in better than forecast of 0.2 percent increase. The growth was underpinned by the 1.1 percent increase in manufacturing output. Output was forecast to grow 0.3 percent after July's 1.2 percent decrease. Moreover, construction output climbed 0.4 percent, offsetting the 0.4 percent fall in July. Data showed that the annual fall in industrial production slowed to 1.6 percent from 2.2 percent and the decline in manufacturing eased to 0.3 percent from 2.0 percent. The visible trade deficit narrowed to GBP 15.06 billion from GBP 18.87 billion in the previous month. At the same time, the surplus on trade in services decreased to GBP 14.1 billion from GBP 14.2 billion a month ago.