UK economy grew 0.1% in August
Production increased while services stalled and construction contracted, official figures show.
Britain’s economy grew by 0.1% in August, beating forecasts of a 0.1% contraction, according to figures released by the Office for National Statistics on Thursday. The increase was driven by production, while services stalled and construction shrank, leaving a mixed picture of economic activity.
Monthly real GDP rose by 0.1% in August, the ONS said. Growth in July was unchanged at 0.4%, while the June estimate was revised up from 0.3% to 0.4%. Economists polled by Reuters had mostly expected the economy to contract by 0.1% in August.
The monthly result was supported by a 0.8% rise in production output. Services output showed no growth, while construction fell by 0.2%. The figures therefore do not point to a broad-based acceleration across the economy.
The ONS’s wider measure was more positive. GDP grew by 0.7% in the three months to August, compared with the three months to May, its eighth consecutive three-month period of growth. Services output rose by 0.9% over that period, but production fell by 0.2% and construction by 1.0%.
Consumer-facing services weakened in August, falling by 0.3%. Sports, amusement and recreation activities fell by 7.1%, while food and beverage services declined by 2.7%. Those falls were partly offset by a 2.7% rise in wholesale and retail trade and motor vehicle repair.
Manufacturing output rose by 1.2% in August, with pharmaceutical production increasing by 5.1%. Transport-equipment manufacturing also grew, although the gains were offset by falls in other manufacturing and repair, and in food, beverage and tobacco production.
The ONS estimated that GDP was 2.1% higher in August than a year earlier. It also warned that early GDP estimates can be revised as more business data become available. The figures describe output rather than household living standards, so the monthly rise does not by itself show that families are financially better off.
One story, several perspectives
What is established
- The ONS estimated monthly GDP growth of 0.1% in August.
- Production grew while services were flat and construction contracted.
- The three-month measure showed 0.7% growth to August, but early estimates remain subject to revision.
Left
Arguments A small rise in GDP should not distract from weak consumer-facing activity, falling construction and the pressure on household incomes. The priority should be public investment, secure employment and targeted support rather than relying on headline growth.
Values Economic security, redistribution and public provision.
Consequences Supporters would accept higher public spending or borrowing if it protected demand and strengthened productive capacity, while warning that weak household finances can undermine the recovery.
Centre
Arguments The figures show resilience but are too early and narrow to justify major policy changes. The sensible response is to maintain fiscal credibility, monitor inflation and productivity, and wait for revised data and a clearer trend.
Values Institutional caution, stability and evidence-led policy.
Consequences This approach could avoid overreacting to a single month, but may leave households and businesses exposed if the weakness in construction and services persists.
Right
Arguments The economy has performed better than expected despite high costs, suggesting that businesses need fewer tax and regulatory barriers rather than more state intervention. Growth should be encouraged through investment, competition and lower business costs.
Values Enterprise, personal responsibility and fiscal restraint.
Consequences Supporters would expect supply-side reforms to improve long-term growth, while accepting that short-term support should be tightly targeted and affordable.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article follows the ONS release and Reuters’ report of the forecast comparison. It distinguishes monthly output from the broader three-month measure and notes the possibility of revisions.
- confirmed Monthly real GDP grew by 0.1% in August 2026. — ONS main points. source
- confirmed Economists polled by Reuters mostly expected a 0.1% contraction. — Reuters report. source
- confirmed Production grew by 0.8%, services showed no growth and construction fell by 0.2% in August. — ONS monthly sector breakdown. source
- confirmed GDP grew by 0.7% in the three months to August. — ONS main points. source
- confirmed Consumer-facing services fell by 0.3% in August. — ONS services section. source
- confirmed Manufacturing output rose by 1.2% and pharmaceutical production by 5.1% in August. — ONS production section. source
- confirmed GDP was 2.1% higher in August than a year earlier. — ONS annual comparison. source
Editor's note
The official first estimate and sector breakdown are clear. Monthly GDP is revised over time, and GDP growth should not be treated as a direct measure of household finances.Sources
- GDP monthly estimate, UK: August 2026 — Office for National Statistics
- UK economy beats forecasts to grow by 0.1% in August — Reuters
More on this in other media
- Channel 4 News — „uk economy”
- BBC News — „uk economy”
- The Guardian — „uk economy”