UK economy grows 1.3% year-on-year in August, matching estimates

ISTANBUL

The British economy grew 1.3% in August, below market forecasts, according to official data released on Thursday.

The figure matched the market expectations for the month, while the July figure was revised upwards to a 1.5% growth, the Office for National Statistics (ONS) data showed.

On a monthly basis, the British gross domestic product (GDP) expanded 0.1%, matching estimates.

Production output grew by 0.4% on a monthly basis, while services showed no growth.

Meanwhile, construction output fell by 0.3%.

"Real gross domestic product (GDP) grew by 0.3% in the three months to August 2025 compared with the three months to May 2025, a slight increase following growth of 0.2% in the three months to July 2025," ONS said in a statement.

In the three months to August, services output grew 0.4% and construction output rose 0.3%.

On the contrary, production output fell 0.3% in the three months to August.

Industrial production rebounds

Meanwhile, the British industrial production was back to growth in August, rising 0.4% on a monthly basis in August.

The figure followed an upwardly revised 0.4% decline in July, and exceeded the market estimates.

The largest upward contributors to the monthly rise came from the production of basic pharmaceutical products (up 3%), manufacturing (up 0.7%), and electricity and gas (up 0.4%).

On the other hand, the production in mining and quarrying fell 2.3% on a monthly basis in August.