Business · Economy · 1 hr ago
UK economy grew 0.1% in August before Healey's first Budget
The UK economy grew 0.1% in August, according to official figures released before John Healey's first Budget as chancellor.
Production, including manufacturing and energy supply, increased, while services were flat and construction contracted.
Growth slowed from 0.4% in July, though the International Monetary Fund has improved its outlook for the UK.
Healey must set out tax and spending plans while trying to balance the Budget without increasing borrowing.
The IMF praised the UK's plans to cut debt and said its growth outlook was better than that of other G7 countries.
Healey is due to present the Budget at the end of the month and has said he will stick to his plans.
The UK economy grew by 0.1% in August, according to figures from the Office for National Statistics.
Growth slowed from 0.4% in July, while economists had forecast a 0.1% contraction.
Higher production lifted the August total, while services were flat and construction output fell.
The figures were released ahead of Chancellor John Healey’s first Budget, due on 28 October.
The International Monetary Fund upgraded its forecast for UK growth this year but warned of a modest slowdown in 2027.
- Who
- The UK economy, measured by the Office for National Statistics.
- What
- GDP grew by 0.1% in August.
- When
- August 2026; the figures were published on 15 October.
- Where
- The United Kingdom.
- Why
- Growth was driven by stronger production, while services were flat and construction contracted.
This story does not have two clearly opposing sides.
The UK economy grew by 0.4%.
GDP rose by 0.1%, with production strength offsetting flat services and falling construction output.
The Office for National Statistics published the August figures.
Healey is due to set out his tax and spending plans in the Budget.
- Monthly GDP growth
- 0.1% in August
- Previous monthly growth
- 0.4% in July
- Production sector
- Up 0.8% in August
- Construction output
- Down 0.2% in August
- GDP over three months to end of August
- Up 0.7%
- Budget date
- 28 October
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What people are saying
I'm pleased the IMF here in Bangkok backed our economic plans in London.
a bit of a better growth prospect
The good news? The UK’s resilience story continues.
Business investment has been an important driver, particularly spending on ICT hardware, likely linked to the build-out of AI infrastructure.