Key facts
- UK economy grew 0.1% in August, beating forecasts.
- Manufacturing output increased by 0.7% in August.
- Services sector growth was flat in August.
- The economy grew 0.3% in the three months to August.
Britain's economy expanded by a better-than-expected 0.1% in August, according to official data released on Thursday, October 16, 2025. City economists had forecast the economy would shrink by 0.1%. The slight growth was primarily driven by a 0.7% increase in manufacturing output, although the key services sector remained flat. The July growth figure was revised downwards to a 0.1% contraction. The International Monetary Fund this week upgraded its UK growth forecasts for this year, but warned of a modest slowdown in 2027.