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UK economy grows 0.1% in August, beating forecasts, ONS says

The ONS said UK GDP rose 0.1% in August after 0.4% in July, against economists' forecasts of a 0.1% fall. The figures are the last before Chancellor John Healey's Budget on 28 October.

7 outlets · 2L · 3C · 2R First reported Account updated

Updated (version 2). New coverage since the last version from Anadolu Agency, Daily Mirror, IJR.

Image: The Guardian
Image: BBC News
Image: IJR
Image: Evening Standard
Image: Daily Mirror
Image: City A.M.
Image: Anadolu Agency

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The story, neutrally told

Centre · 2The Office for National Statistics (ONS) said UK gross domestic product grew by 0.1% in August, following 0.4% growth in July. Mixed · 2The result beat expectations: City economists had forecast a 0.1% contraction. Centre · 1The BBC reported that production, which includes manufacturing, oil and gas extraction and energy supply, boosted August, while services were flat and construction contracted.

Mixed · 2Detailed ONS figures carried by Anadolu Agency and City A.M. put production growth at 0.8% in August, with manufacturing up 1.2% (pharmaceuticals up 5.1%) and mining and quarrying up 1.4%, while services showed no growth and construction fell 0.2%. Centre · 1Anadolu said consumer-facing services fell 0.3% after a 0.1% fall in July, and construction output contracted for a fourth consecutive month. Centre · 1The ONS also said the economy grew 0.4% in June, revised up from 0.3%, and 0.7% over the three months to August.

Mixed · 2Anadolu said the three-month growth was the eighth consecutive rise on a rolling basis and that GDP was 2.1% higher than in August last year; City A.M. said first-quarter growth was 0.6% and second-quarter growth 0.5%. Centre · 1ONS director of economic statistics Liz McKeown said growth showed further strength in the latest three months, led by services, while both production and construction fell. Mixed · 2The figures are the last before Chancellor John Healey's Budget, due on 28 October, and the Guardian said he is under pressure to offer support as the war in the Middle East raises energy costs, while facing higher government borrowing costs.

Left · 1The Guardian's headline said growth came despite a fall in consumer spending, and it noted the UK had the strongest G7 growth in the first half of 2026. Left · 1The IMF this week upgraded its UK growth forecast, though the Guardian said it expects a modest slowdown in 2027 as higher energy prices bite. Centre · 1Healey, in Bangkok for the IMF annual meeting, said the UK "stands out on growth" and promised to "stay the path"; the BBC said he still faces a challenge to deliver a balanced Budget without more borrowing.

Right · 1KPMG chief economist Yael Selfin said households faced renewed pressure from rising wholesale gas prices and higher long-term interest rates, and that the chancellor might take a cautious approach; Capital Economics' Paul Dales said households were becoming more circumspect. Right · 1City A.M. said the Bank of England's Monetary Policy Committee is expected to raise interest rates in November, and that Lord Jim O'Neill urged that any Budget tax rise be thought through carefully.

Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.

Left2 outlets

Framing
Leads on the unexpected growth set against a cost-of-living and energy-cost backdrop from the Middle East war, with pressure on the chancellor.
Emphasis
Fall in consumer spending, energy costs, government borrowing costs, IMF warning of 2027 slowdown.
Leaves out or plays down
Sector breakdown and the ONS comment are not given.
For example
“UK economy unexpectedly grows 0.1% in August despite fall in consumer spending” — The Guardian

Centre3 outlets

Framing
Reports the data as modest growth ahead of the Budget; the BBC adds sector detail and Healey's IMF remarks, the Standard stresses the beat on forecasts and the ONS view, and Anadolu gives the most granular ONS breakdown.
Emphasis
Sector breakdown, three-month growth, ONS quote, Healey's response; Anadolu adds subsector, consumer-facing and year-on-year figures.
Leaves out or plays down
The BBC and Standard do not mention the fall in consumer spending or energy-cost pressure on households; Anadolu gives no political context.
For example
“Industrial production drives monthly expansion as services stall and construction declines” — Anadolu Agency
“Consumer-facing services declined 0.3%” — Anadolu Agency

Right2 outlets

Framing
IJR gives a brief beat-on-forecasts summary with a Budget dilemma; City A.M. leads on the production-led surprise and a business and Budget angle, with economists warning of household pressure and interest-rate rises.
Emphasis
Production boost, pressure on Healey's fiscal room, calls to avoid heavy tax rises, expected Bank of England rate rise.
Leaves out or plays down
IJR gives little sector detail; City A.M. gives no Healey response.
For example
“The figures offer Chancellor John Healey a modest boost ahead of his October 28 Budget” — IJR
“Healey has been warned against stifling momentum in the UK economy seen in the first half of the year ahead of any heavy tax rises at the BUdget.” — City A.M.

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