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UK GDP Grows 0.1% in August, Beating the Calendar Estimate

UK growth slowed sharply in August, but still beat the calendar estimate and sits within a run of eight straight three-month gains, leaving the Bank of England with mixed evidence.

UK GDP grew 0.1% in August 2026, the Office for National Statistics (ONS) said at 07:00 UK time today, down from 0.4% in July but above the calendar estimate of -0.1%. July’s 0.4% was left unrevised, while June was revised up to 0.4% from 0.3%.

The ONS said: “The growth in August was driven by a 0.8% growth in production, with services showing no growth, and construction falling by 0.2% in August 2026.” Manufacturing rose 1.2% within production, and construction has now fallen four months in a row. So the month leaned on production while services stood still.

The softer month sits inside a firmer trend. GDP in the three months to August was 0.7% higher than in the three months to May, the eighth consecutive three-month rise. Services led with 0.9%, while production fell 0.2% and construction dropped 1.0%. GDP in August was also 2.1% above August 2025.

SectorAugust m/mThree months to August on three months to May
GDP+0.1%+0.7%
Production+0.8%-0.2%
Services0.0%+0.9%
Construction-0.2%-1.0%

Production was the only sector to grow in the month, yet it is the one that fell over the three months. Services show the reverse.

What it means for the Bank of England

A weak month inside a strong quarter gives the Bank of England mixed evidence. Bank Rate stood at 3.75% on Tuesday.

The ONS pointed to real-time indicators showing sustained energy price rises, weaker consumer demand and housing activity in September, and some signs of labour market weakness. The next ONS GDP release is due on the 12th of November.

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