15th October 2026
The UK economy grew by 0.1% in August 2026, according to the latest figures from the Office for National Statistics (ONS), providing a modest boost after stronger growth in July. The result was better than economists had expected, although it does not necessarily signal a sustained improvement in the economy.
Manufacturing provided an important source of growth, with output rising by 1.2% during the month. The services sector, which accounts for the largest share of the UK economy, recorded no growth, while construction output fell slightly.
The figures suggest that parts of British industry are holding up better than expected, but the overall picture remains mixed. Growth in computer programming and related activities has also helped support recent economic performance, reflecting the expanding role of technology and artificial intelligence.
The monthly figures need to be treated with some caution, as they can be revised when more information becomes available. A single month's growth does not necessarily indicate that businesses and households are experiencing an improvement in their financial circumstances.
For the Government, the figures provide some welcome news ahead of the forthcoming Budget. However, the challenge remains to turn modest economic growth into sustained improvements in productivity, investment and living standards, particularly while households and businesses continue to face pressure from higher costs and economic uncertainty.
The latest figures offer a little reassurance, but they are not evidence that the UK's economic difficulties have been overcome.
Source: Office for National Statistics, GDP monthly estimate, UK: August 2026.
https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/august2026