The UK economy grew by an estimated 0.1% in August 2026, with stronger industrial production offsetting flat services activity and a further decline in construction output, according to the Office for National Statistics.
The monthly increase followed GDP growth of 0.4% in July, which was unchanged from the previous estimate. Separately, the Office for National Statistics estimates that the economy expanded by 0.7% over the three months to August compared with the preceding three months.
These figures describe different periods. The August monthly rate measures the change between July and August, while the three-month figure compares the combined output of June, July and August with that of March, April and May. The two rates therefore cannot be added together or treated as interchangeable measures of growth.
August’s monthly expansion was driven by production output, which increased by 0.8%. Services output showed no growth, while construction contracted by 0.2%.
Within production, manufacturing increased by 1.2% during the month. Output in the manufacture of basic pharmaceutical products and pharmaceutical preparations rose 5.1%, while transport equipment manufacturing increased by 1.8%. These positive movements were partly offset by declines elsewhere in manufacturing.
Production’s monthly improvement followed a weaker period for the sector. Across the three months to August, output was still 0.2% lower than in the preceding three months, illustrating the difference between a monthly rebound and sustained quarterly growth.
Services presented a contrasting picture. Monthly output was unchanged after increasing by 0.5% in July, as revised by the ONS. Among service activities, wholesale trade and professional, scientific and technical services made positive contributions, while administrative and support services contracted.
Consumer-facing services declined by 0.3% in August. Food and beverage service activities fell by 2.7%, and sports, amusement and recreation activities recorded a larger monthly contraction. These figures indicate weaker output in specific areas rather than a uniform decline across the service economy.
Services nevertheless remained the principal driver of growth over the three-month period. Output increased by 0.9% compared with the three months to May, with professional, scientific and technical activities, information and communication, and administrative and support services contributing to the increase.
Construction was weaker on both measures. Output fell by 0.2% during August, its fourth consecutive monthly decline, and decreased by 1% over the three months to August. The three-month contraction included a 3.2% fall in private new housing work.
The ONS also revised earlier estimates. June’s monthly GDP growth was increased from 0.3% to 0.4%, while the growth rate for the three months to July was revised from 0.4% to 0.5%.
Revisions arise as more complete information becomes available, including additional business survey responses and updates to the national accounts. The August figure is an early estimate and may be revised upwards or downwards in subsequent publications.
Compared with August 2025, the ONS estimates that monthly GDP was 2.1% higher. Over the three months to August, output was 1.8% above the same three-month period a year earlier.
The different sectoral movements show that the modest headline expansion did not reflect consistent growth across the economy. Manufacturing improved during August, but the longer-term production figures remained negative, while services provided most of the three-month increase and construction continued to contract.
The next monthly GDP estimate is scheduled for 12 November, when the ONS will publish its initial assessment of September output and may revise the figures for earlier months.
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