The UK economy expanded 0.1% month-on-month in August 2026, slowing from 0.4% growth in both July and June but defying market expectations of a 0.1% contraction. Growth was driven by a 0.8% increase in production output, led by manufacturing, which rose 1.2%, and mining and quarrying, up 1.4%. These gains were partly offset by a 1.2% decline in water supply, sewerage and waste management. Meanwhile, services output showed no growth, as a 2% rise in wholesale and retail trade was offset by a 1.7% fall in administrative and support services and a 2.7% decline in food and beverage services. Construction output fell 0.2%, marking its fourth consecutive monthly decline, as a 0.7% drop in new work outweighed a 0.4% increase in repair and maintenance. On an annual basis, GDP grew 2.1%, its strongest increase since October 2022, up from 1.8% in July and exceeding forecasts of 1.7% growth.