UK economy grows 0.1 percent in August, beating forecasts

UK gross domestic product rose 0.1 percent in August, beating expectations of a 0.1 percent fall, as manufacturing output rose 1.2 percent while services stalled and construction fell for a fourth straight month, the Office for National Statistics said.

Why it matters: Growth held up two weeks before the October 28 Autumn Budget and three weeks before the Bank of England's November 5 decision, but the August gain rested on factories rather than services, which account for most of the economy and were flat on the month.

Data as of Office for National Statistics monthly GDP estimate for August 2026, released Thursday, October 15, 2026. Figures opened and read in full in PA reporting of the ONS release and in ActionForex's report of the same release, with the three-month figures matching the ONS bulletin text. Developing item, 2 to 3 sentences by design.

The UK economy grew 0.1 percent in August, ahead of the 0.1 percent decline economists had expected and slower than July’s 0.4 percent, with June also revised up to 0.4 percent and growth over the three months to August accelerating to 0.7 percent from 0.5 percent, the Office for National Statistics reported on Thursday. Manufacturing drove the month, with production output up 0.8 percent and manufacturing up 1.2 percent, led by a 5.1 percent rise in pharmaceuticals, while services output was flat after a 0.5 percent rise in July and consumer-facing services fell 0.3 percent. Construction fell 0.2 percent, a fourth consecutive monthly decline, leaving an uneven expansion in which services still carried the three-month picture, up 0.9 percent over the period.

UK economy grows 0.1 percent in August, beating forecasts

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