{"id":127048,"date":"2026-10-15T12:25:00","date_gmt":"2026-10-15T11:25:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127048"},"modified":"2026-10-15T12:19:42","modified_gmt":"2026-10-15T11:19:42","slug":"ons-reveals-surprise-uk-economic-growth","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/ons-reveals-surprise-uk-economic-growth\/","title":{"rendered":"ONS Reveals Surprise UK Economic Growth As Experts Get August Forecasts Wrong"},"content":{"rendered":"\n

The latest figures, published by the Office for National Statistics (ONS<\/strong>) on 15 October, showed that growth slowed from 0.4% in July. Production increased by 0.8%, while services recorded no growth and construction output declined by 0.2%.<\/p>\n\n\n\n

The figures come ahead of the Government\u2019s Budget, with economists warning that rising inflation and uncertainty could weigh on economic activity towards the end of the year. Despite the monthly slowdown, the economy expanded by 0.7% in the three months to August, its eighth consecutive period of three-month growth.<\/p>\n\n\n\n

Manufacturing Growth Helps UK Economy Avoid Predicted Contraction<\/strong><\/h2>\n\n\n\n

Economists had anticipated a weaker August following stronger-than-expected performances in June and July. According to the Evening Standard<\/a>, Robert Wood, chief UK economist at Pantheon Macroeconomics, had forecast a 0.3% contraction, while Thomas Pugh of RSM UK expected a smaller decline of 0.1%.<\/p>\n\n\n\n

Deutsche Bank analysts had predicted that the economy would remain unchanged, with modest services growth potentially offsetting declines in production and construction. The official figures instead showed that production was the main driver of August\u2019s expansion, increasing by 0.8% following growth of 0.3% in July.<\/p>\n\n\n\n

Manufacturing <\/strong>output rose by 1.2%, with nine of its 13 subsectors recording increases. Pharmaceutical manufacturing grew by 5.1%, following a 3.4% rise in July, while transport equipment manufacturing increased by 1.8%.<\/p>\n\n\n\n

According to the ONS<\/a>, services output was unchanged in August after expanding by 0.5% in both June and July. Only four of the sector\u2019s 14 subsectors recorded growth during the month.<\/p>\n\n\n\n

Wholesale <\/strong>and retail trade<\/strong>, including motor vehicle repairs, increased by 2.0%, while professional, scientific and technical activities rose by 1.5%. Administrative <\/strong>and support services <\/strong>declined by 1.7%, reflecting weaker activity in rental and leasing, office support and employment services. Construction <\/strong>contracted by 0.2%, marking its fourth consecutive monthly decline. New construction work fell by 0.7%, with private housing work decreasing by 1.9%.<\/p>\n\n\n\n

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GDP grew 0.7% in the three months to August 2026, following revised growth of 0.5% in the three months to July.

Services grew (+0.9%) while production (-0.2%) and construction (-1.0%) both fell.

Read the full article \u27a1\ufe0f https:\/\/t.co\/Cx45uRuVoN<\/a> pic.twitter.com\/yDcyDqMXXc<\/a><\/p>— Office for National Statistics (ONS) (@ONS) October 15, 2026<\/a><\/blockquote>