15.10.202606:08:03UTC+00UK Economy Unexpectedly Grows in August

The UK economy grew by 0.1% month-on-month in August 2026, slowing from the 0.4% expansion recorded in both July and June but outperforming market expectations of a 0.1% contraction. Growth was underpinned by a 0.8% rise in production output, driven mainly by manufacturing, which increased by 1.2%, and mining and quarrying, which rose by 1.4%. These gains were partially offset by a 1.2% decline in water supply, sewerage, and waste management.

In contrast, services output was flat overall: a 2% increase in wholesale and retail trade was counterbalanced by a 1.7% fall in administrative and support services and a 2.7% drop in food and beverage services. Construction output edged down 0.2%, its fourth consecutive monthly decline, as a 0.7% decrease in new work outweighed a 0.4% rise in repair and maintenance activity.

On an annual basis, GDP expanded by 2.1% in August, the fastest pace since October 2022, up from 1.8% in July and above consensus forecasts of 1.7% growth.