The UK economy grew by 0.1% in August 2025, following a revised 0.1% fall in July and 0.4% growth in June, according to new data from the Office for National Statistics (ONS).
Real GDP rose 0.3% in the three months to August compared with the previous three-month period, up from 0.2% in the three months to July.
The figures show mixed performance across sectors. Production grew by 0.4% in August, driven by increases in manufacturing output, while services output showed no growth and construction output fell by 0.3%.
Over the three months to August, services rose 0.4%, construction increased 0.3% and production fell 0.3%.
The services sector remained the main driver of overall GDP growth, supported by human health and social work, administrative services and professional activities.
However, output in wholesale and retail trade declined, reflecting continued pressure on consumer-facing industries.
Construction weakened as private housing repair and maintenance fell by 4.3%, despite a rise in new work.
Manufacturing output increased 0.7% in the month, supported by stronger performance in pharmaceuticals and machinery.
Richard Pike, chief sales and marketing officer at Phoebus Software, said: “Growth in GDP is encouraging and in line with the IMF’s prediction this week that the UK will have the second-fastest growing economy in the G7 this year.
“But it doesn’t change the fact that the economy remains finely balanced. Inflation is still high and predicted to remain there, and unemployment is rising.
“That combination makes it harder for the Bank of England to justify cutting rates in November. For now, stability is likely to be the Bank’s priority.
“A premature rate cut could risk reigniting price pressures just as they’re starting to ease.”
Mike Randall, chief executive of Simply Asset Finance, added: “A growing economy will be a welcome sight for the Chancellor, perhaps easing some of the pressure ahead of the looming Autumn Budget.
“The fact that businesses and consumers continue to show resilience is a good sign, but it must not be taken for granted.
“Certainty and stability enable businesses to invest and plan for growth. Aligned policy direction, not incremental changes or loose promises, should now be the overwhelming priority for those in Number 11 to keep us on the road to growth.”
