Economy grew 0.1% in August ahead of chancellor's first Budget
The UK economy grew by 0.1% in August, exceeding analyst expectations ahead of the upcoming Budget. While the services sector remained flat, growth was supported by production, though the construction sector saw a contraction.
Why it matters
Economic growth figures are critical indicators for government fiscal policy and investor confidence in the UK market.
Image source, Getty Images By Archie Mitchell Business reporter Published 15 October 2026, 07:07 BST Updated 3 minutes ago The UK's economy grew slightly in August, according to the last set of official figures before John Healey's Budget.
With the chancellor planning to set out his tax and spending plans later this month, the Office for National Statistics (ONS) said the economy expanded by 0.1%, which was better than analysts had expected.
The small increase follows growth of 0.4% in July , as well as positive upgrades to the outlook for Britain's economy from global watchdog the International Monetary Fund (IMF).
But Healey still faces a challenge to to deliver a balanced Budget without turning to more borrowing.
Britain's economy was boosted in August by an increase in production, which includes manufacturing, oil and gas extraction and energy supply.
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