GDP monthly estimate, UK: August 2026 + Reactions

GDP monthly estimate, UK: August 2026

Chancellor of the Exchequer, John Healey MP said:  

These GDP figures are welcome news. Despite conflicts in the Middle East and Europe hitting people across the world, today's figures offer more proof of Britain's resilience in the face of these global shocks.  

"This week the IMF have upgraded UK growth for 2026 and said that our fiscal discipline stands out with the lowest deficit in the G7 forecast by 2029.

Today, I'm discussing with international finance ministers what we can do to limit the impact of global events on the UK. My Budget will build on this approach to drive good growth in every postcode, provide some breathing space for today, and offer fresh hope for the future.

 Background

• Silvana Tenreyro (IMF): (On deficit deduction) The UK has already started a consolidation process and it's the country that basically stands out along with India as well () the message for the UK is just simply stay the course, and continue on that trajectory.

TUC

Commenting on ONS figures released today showing GDP growing by 0.1% in August, and by 0.7% in the three months to August, TUC General Secretary Paul Nowak said: 

"It's great to see the economy continue to strengthen. 

"But despite growth returning, working people up and down the country are still under the cosh with energy bills rising as a result of Trumps's illegal war - and banks are enjoying bonanza profits. 

"This needs to change. The Chancellor needs to deliver a Budget that ensures the gains of growth are shared. 

"That means cutting households' energy bills by taxing banks' enormous profits, and putting more money in workers' pockets - so Britain can get back to spending on the high street.

CBI

Ben Jones, CBI Senior Lead Economist, said: 

GDP was broadly steady in August, but this follows exceptionally strong growth in June and July. The economy has generally performed well so far this year. But amid rising inflation and tightening financial conditions, maintaining that momentum does look difficult, with a more subdued end to 2026 in prospect. 

The messages coming from firms tell a story of an economy marked by contrasts. The strength of demand varies across sectors. Firms are investing, but cost pressures are forcing tough choices about which projects to back. Softer hiring sits alongside persistent shortages of key skills. Activity has proved resilient as businesses adapt to a challenging environment, but often at the expense of margins and future expansion plans.

The Autumn Budget provides an opportunity for the government to build on the economy's resilience by giving businesses the confidence and certainty they need to invest, expand and create jobs. That means taking action to reduce business electricity costs, ease the burden of employer National Insurance Contributions and reform business rates, while removing wider barriers to investment. With fiscal headroom limited, the Chancellor should prioritise measures that unlock growth, rather than adding further cost pressures that risk holding back investment, job creation and ultimately improvements in living standards. 

IEA

Responding, Dr Valentin Boboc, Chief Economist, Institute of Economic Affairs, said:

The economy's resilience is welcome given global uncertainty and external pressures on energy costs and shipping.  

But growth of just 0.1% is hardly cause for celebration. Britain still needs stronger, sustained growth to deliver meaningful improvements in living standards. 

With the Budget approaching, the Government should build on that resilience by tackling domestic policies that unnecessarily inflate the cost of living and doing business. 

British Chambers of Commerce

Responding to the latest GDP data, published this morning by the Office for National Statistics, Stuart Morrison, Research Manager at the British Chambers of Commerce, said: 

Ahead of the budget, growth of 0.7% in the three months to August is welcome and a positive indicator of business resilience despite challenging economic conditions. 

This expansion was driven entirely by services, led by professional, scientific and technical activities, and information and communication, while production and construction both fell. Computer programming and consultancy has been the largest single industry contributor to three-month growth for six months in a row.  

But growth in August remained lukewarm with just 0.1% added, and it is clear many sectors are still struggling to make headway amidst global headwinds. Firms are facing significant pressures from the cost of doing business, as the Middle East conflict continues to ratchet up energy prices. 

The Chancellor's Budget, in less than two weeks, provides a crucial opportunity to give businesses the breathing space they need to invest, recruit and trade. 

We want to see three immediate steps, including a cut in employer National Insurance contributions for under-25s, action on energy bills and business rates, and better, more consistent export support. 

Businesses across the UK want to grow faster, but they need the right conditions to do it. Reducing the cost burden will help rebuild confidence, unlock investment and create jobs. 

As the Chancellor weighs up the difficult choices ahead, the message from our Chamber Network is clear: Back Business, Cut Costs and Deliver Growth.