UK GDP: the economy grew 0.1% in August and 0.7% over three months

The UK economy grew by 0.1% in August, after 0.4% in July, the Office for National Statistics said on Thursday. Over the three months to August, UK GDP grew by 0.7% on the previous three months, the ONS’s monthly estimate shows. That is the fastest three-month growth since the period to October 2022.

The economy was 2.1% larger in August than a year earlier. The figures land two weeks before Chancellor John Healey’s first Budget and three weeks before a Bank of England meeting at which markets expect a rate rise.

What grew in August

Factories did the work in August. Production output rose 0.8% in the month and manufacturing 1.2%, its second strong month after 1.0% in July. Services, by far the largest part of the economy, showed no growth. Construction fell 0.2%.

Over three months the picture flips. Services grew 0.9% in the three months to August, while production fell 0.2% and construction 1.0%. Manufacturing grew 0.1%. The ONS also revised earlier months up: growth in the three months to July is now 0.5%, not 0.4%, and June’s monthly growth is 0.4%, not 0.3%. The release brings in this year’s Blue Book revisions, which reach back to 1997.

A flat 2025, a faster 2026

The August figure caps a sharp change of pace. On the ONS’s monthly index of output, the economy barely moved in the second half of 2025: the index stood at 101.2 in July 2025 and 101.3 in January 2026, its monthly series shows. By August 2026 it had reached 103.1, a rise of about 1.8% in seven months. Only April and May broke the run, with a small dip and then no change.

Services carried most of that climb. After revisions, services output grew 0.5% in June and again in July, so August’s flat month followed two strong ones. Construction went the other way: it fell 0.3% in June, 0.5% in July and 0.2% in August. July’s figure was first published as a small rise.

Tech and legal services lead UK growth

Over the past year, a handful of service industries have done much of the growing. GDP in the three months to August was 1.8% higher than a year earlier. Five industries added 0.93 percentage points of that, about half the total, the ONS says.

Added to UK GDP growth over a year, points. Source: Office for National Statistics, GDP monthly estimate, UK: August 2026. Three months to August on a year earlier; total growth 1.8%.

Computer programming	0.32
Legal work	0.22
Scientific R&D	0.18
Advertising, research	0.11
Information services	0.10

Source: Office for National Statistics, GDP monthly estimate, UK: August 2026. Three months to August on a year earlier; total growth 1.8%.The Macro Notebook

Computer programming and consultancy alone added 0.32 points. Legal work added 0.22, and scientific research 0.18. These belong to the two broad sectors the ONS names as the largest contributors: professional, scientific and technical activities, and information and communication. Services as a whole grew 2.2% on the year, production 0.8%, and construction shrank 1.6%.

What the figures mean for the Budget and the Bank

Healey delivers his first Budget on 28 October, alongside a new forecast from the Office for Budget Responsibility, the Treasury told MPs in July. Faster growth helps the public finances at the margin, as more output means more tax. It does not settle the choice of tax rises or cuts that he faces.

For the Bank of England, a stronger economy removes one argument for waiting. Bank Rate stands at 3.75%, the Bank’s website shows. Markets put the chance of a quarter-point rise at the meeting on 5 November at 93%, based on prices at the close on 14 October, Central Bank Watch calculates.

What to watch next

The ONS publishes its next monthly estimate, for September, on 12 November. August’s slow services month is the figure to watch: services make up most of the economy, and a second flat month would take much of the shine off the three-month number. Before that comes the Budget on 28 October, then the Bank of England’s decision on 5 November.