Key facts
- UK economy grew 0.1% in August, beating forecasts.
- Production output rose 0.8% in August, led by manufacturing.
- Services output was flat in August.
- Construction output fell 0.2% in August.
- Annual GDP growth was 2.1% in August.
The UK economy expanded by 0.1% in August 2026, defying economists' expectations of a 0.1% contraction. This growth, though slower than the 0.4% seen in July and June, was primarily driven by a 0.8% increase in production output, with manufacturing rising 1.2% and mining and quarrying up 1.4%. Services output remained flat, as gains in wholesale and retail trade were offset by declines in administrative and support services, and food and beverage services. Construction output fell 0.2%, marking its fourth consecutive monthly decrease. Annually, GDP grew 2.1%, the strongest increase since October 2022.