UK economy grew by 0.1% in August — The Guardian

In the United Kingdom, gross domestic product grew by 0.1% in August compared with the previous month, despite a decline in consumer spending. In July, GDP growth stood at 0.4%, while economists had forecast a 0.1% contraction in August.

Data amid more expensive energy

As The Guardian reports, new data from the Office for National Statistics were released less than two weeks before Chancellor John Healey presents the budget on October 28. The war in the Middle East is affecting the global economy and is accompanied by rising energy costs for British households and companies.

The Chancellor is under pressure to announce a support package aimed at mitigating the effects of higher costs. At the same time, he will have to strike a balance amid a sharp rise in the cost of government borrowing.

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More resilient performance

In recent months, the British economy has shown greater resilience than expected at the start of the war with Iran. In the first half of 2026, the United Kingdom recorded the highest rate of economic growth among G7 countries. According to official data, one factor behind the unexpected growth in August was the active expansion of business activity related to artificial intelligence.

The International Monetary Fund this week raised its forecast for UK economic growth this year, but warned of a possible moderate slowdown in 2027 due to higher energy prices.