The UK economy grew by 0.1% in August 2026 compared with July, according to Office for National Statistics (ONS) figures reported by the BBC and The Guardian. The result beat economists’ expectations, but growth slowed markedly. Meanwhile, activity in consumer-facing services fell for a second consecutive month.
The figures, published on 15 October, show that the economy continued to expand after gross domestic product (GDP) rose by 0.4% in July. According to The Guardian, City economists had expected a 0.1% contraction in August. The modest increase was therefore a positive surprise, although performance varied across sectors.
Production rises while construction falls
The services sector as a whole recorded no growth in August. Production increased by 0.8% month on month, according to figures reported by The Guardian, while construction output fell by 0.2%.
Consumer-facing services performed less well. The Guardian, citing the ONS, reports that activity fell by 0.3%, following a 0.1% decline in July. However, this does not mean that overall household spending fell by the same amount: the measure covers a particular part of the services sector, rather than all purchases and payments made by UK households.
The broader picture still shows growth
GDP grew by 0.7% in the three months to August, both the BBC and The Guardian report. That figure offers a broader view of economic developments than a single month’s reading, but does not determine how the economy will perform in the autumn.
The BBC also highlights a revision to earlier figures: the ONS raised its estimate of monthly growth in June from 0.3% to 0.4%. It is a reminder that initial GDP estimates can subsequently be revised. August’s figures therefore show modest growth across the economy as a whole, but not improvement in every part of it — particularly in services aimed directly at consumers.
