UK GDP expanded by 0.1% mom in August, beating expectations for a 0.1% contraction, although growth slowed sharply from July’s 0.4%. According to the Office for National Statistics, the expansion was driven entirely by production, while services stagnated and construction contracted. However, the broader three-month picture remained more resilient, with GDP growth accelerating from 0.5% to 0.7% in the three months to August, marking the eighth consecutive period of positive three-month growth. Services output increased 0.9% over the period, up from 0.7% previously, suggesting that August’s weak monthly performance has yet to undermine the underlying expansion.
Manufacturing provided the main support to August’s growth, with production output accelerating from 0.3% to 0.8% mom, comfortably exceeding expectations for a 0.1% decline. Manufacturing production strengthened from 1.0% to 1.2%, compared with forecasts of just 0.1%, as nine of thirteen subsectors recorded increases. Pharmaceutical manufacturing rose 5.1%, following a 3.4% increase in July, while transport equipment output rebounded 1.8%. However, services output stalled at 0.0% after expanding 0.5% in July, with only four of fourteen subsectors recording growth. Consumer-facing services contracted 0.3%, including a 2.7% decline in food and beverage activities, highlighting weakness in parts of domestic demand despite the manufacturing rebound.
Construction remained another source of weakness, contracting 0.2% mom in August and extending its decline to a fourth consecutive month. July’s reading was also revised sharply downward from a previously reported 0.1% increase to a 0.5% contraction. New construction work fell 0.7% in August, led by a 1.9% decline in private housing activity, while total construction output dropped 1.0% over the three months to August. The figures point to an uneven economic expansion, with manufacturing supporting monthly GDP while services and construction show weaker momentum. Nevertheless, stronger three-month growth, particularly in services, suggests the broader economy remains relatively resilient despite August’s slowdown.
Data Summary — UK August 2026 GDP
Headline Economic Data
| Indicator | July | August | Consensus |
|---|---|---|---|
| GDP m/m | +0.4% | +0.1% | -0.1% |
Sectoral Performance
| Indicator | July | August |
|---|---|---|
| Services Output m/m | +0.5% | 0.0% |
| Production Output m/m | +0.3% | +0.8% |
| Manufacturing Output m/m | +1.0% | +1.2% |
| Construction Output m/m | -0.5% | -0.2% |
| Consumer-Facing Services m/m | -0.1% | -0.3% |
| Pharmaceutical Manufacturing m/m | +3.4% | +5.1% |
| Transport Equipment Manufacturing m/m | -1.0% | +1.8% |
Three-Month Growth
| Indicator | Three Months to July | Three Months to August |
|---|---|---|
| GDP | +0.5% | +0.7% |
| Services | +0.7% | +0.9% |
| Production | -0.7% | -0.2% |
| Construction | -0.2% | -1.0% |
Key Takeaways
- UK GDP beats expectations despite slowing growth: GDP expanded by 0.1% mom in August, exceeding forecasts for a 0.1% contraction but slowing from July’s 0.4% increase.
- Manufacturing drives the monthly expansion: Industrial production accelerated from 0.3% to 0.8% mom, while manufacturing growth strengthened from 1.0% to 1.2%. Pharmaceuticals and transport equipment provided important contributions.
- Services stagnate as consumer-facing activity weakens: Services output slowed from 0.5% to 0.0% mom, with only four of fourteen subsectors expanding. Consumer-facing services contracted 0.3%, including a 2.7% decline in food and beverage activities.
- Construction extends its contraction: Construction output fell 0.2% mom, marking its fourth consecutive decline. July’s reading was revised sharply downward from 0.1% growth to a 0.5% contraction, highlighting persistent weakness.
- Three-month growth remains resilient: GDP growth accelerated from 0.5% to 0.7% over the three months to August, supported by services growth of 0.9%. The figures suggest uneven monthly momentum rather than a confirmed deterioration in the broader economy.
