UK economy grew 0.1% in August

16 Oct 2025

The UK economy expanded by 0.1% in August, according to the latest figures from the Office for National Statistics (ONS).

The growth followed a contraction of 0.1% in in the UK economy during July. The main driver of growth in August was the manufacturing sector, which grew by 0.7% in the month.

Ben Jones, Lead Economist at the Confederation of British Industry (CBI), said: 'Activity remains patchy across sectors, with many businesses reporting subdued demand and higher operating costs. And firms are choosing to sit tight on hiring and investment until there's more clarity on the policy outlook.

'The Budget provides a critical opportunity for the government to reaffirm its commitment to growth. Going further on planning reform is a positive first step and firms will be looking for further supportive interventions on 26 November.

'This includes delivering the strategic reforms required to simplify the tax system, positioning business to invest in the skills they need through a fully flexible Growth and Skills Levy and exploring further measures to address the UK's high energy costs.'