UK gross domestic product (GDP) grew by 0.1% in August 2026, beating economists’ expectations of a 0.1% contraction, as stronger production output offset weakness in construction and flat services activity, according to the Office for National Statistics (ONS).

Chancellor John Healey called it "welcome news" for the economy after GDP had been forecast by economists to fall between 0.1% and 0.3%.

Monthly growth followed an unrevised 0.4% increase in July, while June’s figure was revised up to 0.4% from 0.3%, ONS said.

Over the three months to August, GDP grew by 0.7%, marking the eighth consecutive three-month period of expansion. Services output increased by 0.9%, while production fell by 0.2% and construction declined by 1%.

Compared with a year earlier, GDP grew by 1.8% in the three months to August and was 2.1% higher in August alone. Professional, scientific and technical activities, alongside information and communication, made the largest positive contributions to annual growth, the figures showed.

The latest figures suggest the economy continued to expand despite persistent uncertainty, although there was contrasting performance across sectors.

The largest contribution to the three-month on three-month growth came from the services sector, which grew by 0.9% in the three months to August. There were falls in the remaining two main sectors, with a fall of 1.0% in construction sector and a 0.2% fall in the production sector in August.

Shadow chancellor, Andrew Griffith said the Government must cut taxes at the much anticipated upcoming autumn Budget to continue growth and avoid a decline.

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