UK economy defies expectations with 0.1% monthly rise in August

The UK economy registered surprise monthly growth in August, data on Thursday showed, led by a rise in production.

The Office for National Statistics said gross domestic product climbed 0.1% in August from July, defying expectations of a decline. According to consensus cited by FXStreet, a 0.1% decline had been expected.

"The growth in August was driven by a 0.8% growth in production, with services showing no growth, and construction falling by 0.2% in August 2026," the ONS said.

GDP growth in August eased from a 0.4% rise in July from June. Monthly growth in June, meanwhile, was upwardly revised to 0.4% from a previously reported 0.3% rise from May.

Separate figures on Thursday showed the UK trade deficit narrowed to below £1 billion in August.

The trade deficit slimmed to £920 million in August, from £2.32 billion in July and £2.11 billion a month prior.

Imports fell 1.5% on-month to £83.25 billion in August from £84.53 billion in July. Exports edged up 0.1% to £82.33 billion from £82.21 billion.

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