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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe UK economy expanded by just 0.1% in August 2026, according to the Office for National Statistics (ONS). Production provided the only substantial monthly lift, rising 0.8%, while services recorded no growth and construction output fell 0.2%. The result follows 0.4% growth in both June and July and shows why the latest monthly figure feels close to stagnation even though the wider three-month trend remains positive.
What the August GDP figures show
ONS defines gross domestic product (GDP) as the value of goods and services produced in the UK. It is used to estimate the economy’s size and growth. The August release measures activity over one month, so it should not be read as the same type of measure as the rolling three-month figures also published by ONS.
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| Measure | Latest result | What it covers |
|---|---|---|
| Monthly GDP, August 2026 | Up 0.1% | Change from July 2026 |
| Monthly GDP, June and July 2026 | Up 0.4% in each month | Separate month-to-month changes |
| GDP, three months to August | Up 0.7% | Compared with the preceding three-month period |
| GDP, three months to August year on year | Up 1.8% | Compared with the same three-month period a year earlier |
| GDP in August year on year | Up 2.1% | Compared with August 2025 |
The 0.1% monthly increase and the 0.7% three-month increase are not interchangeable. The three-month figure captures growth accumulated across June, July and August, including the stronger performance in the first two months. Services grew over that broader period even though they were flat in August.
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Which sectors grew and which contracted?
Production drove the monthly increase
Production output rose 0.8% in August, with manufacturing leading the increase. That was enough to offset the lack of growth in services and the fall in construction. However, production was still 0.2% lower across the three months to August, so the monthly improvement has not yet reversed the sector’s broader decline.
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Services stopped growing in August
Services output was unchanged in August. That means the sector did not add to monthly growth, but it remains the strongest contributor over the latest three-month period: services output increased 0.9% in the three months to August. Professional, scientific and technical activities, along with information and communication, were among the stronger service areas over that period.
Construction fell again
Construction output dropped 0.2% in August, its fourth consecutive monthly decline. Across the three months to August, construction output was down 1.0%, and it was 1.6% lower than a year earlier.
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What is happening inside construction?
The August fall was concentrated in new work. New construction work decreased 0.7%, while repair and maintenance increased 0.4%. Private-housing new work fell 1.9% and was the principal monthly drag identified by ONS.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Over the three months to August, both major construction components declined: new work fell 1.4% and repair and maintenance fell 0.3%. These figures establish the direction of output but do not, by themselves, prove that one factor—such as interest rates, public policy or material costs—caused the decline. The release reports what was produced, rather than providing a definitive causal explanation.
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Why the economy can be growing while the latest month feels stagnant
- Monthly growth is a short snapshot. August’s 0.1% increase compares only with July and was held back by flat services and falling construction.
- The three-month measure smooths individual months. Growth of 0.7% in the three months to August includes the 0.4% increases recorded in June and July.
- Sector performance is uneven. Services added 0.9% over the three-month period, while production and construction contracted. A positive overall number therefore does not mean that every industry or household experienced stronger activity.
This combination explains the apparently conflicting headlines: the economy is larger over the recent three-month window, but momentum in the latest month was very weak.
Annual context and indicators to watch
GDP was 2.1% higher in August 2026 than in August 2025. On the three-month comparison, GDP was 1.8% higher than a year earlier. Construction moved in the opposite direction, down 1.6% year on year over that three-month period.
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ONS also reported that electricity and gas wholesale prices remained more than twice their levels a year earlier. It separately noted weaker consumer-demand indicators in September 2026. Those are useful real-time signals of the environment facing businesses and households, but they should not be presented as a proven explanation for August’s GDP result.
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August GDP is an early estimate. ONS warns that monthly GDP figures can be revised in either direction as additional information arrives. Subsequent releases may therefore change the size of the August increase or the sector breakdown. The current figures should be treated as the best estimate available for the period, not a final measurement.
Quick Recap
What the release means in practical terms
- For the overall economy: activity expanded, but only marginally in August.
- For services: the sector remains the main source of recent three-month growth, despite being flat in the latest month.
- For production: the 0.8% August rise is encouraging, but production remains down over three months.
- For construction: four straight monthly declines and a 1.0% three-month fall point to sustained weakness, especially in new work and private housing.
- For anyone interpreting the data: always identify whether a figure is monthly, three-month, or year on year, and remember that early estimates can be revised.
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