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16 Oct 2025

UK economy sees weaker-than-expected growth in August after July contraction

UK economy sees weaker-than-expected growth in August after July contraction

Britain’s economy eked out growth in August but expansion was weaker than forecast and official figures revealed a surprise contraction in July after a downward revision.

The Office for National Statistics (ONS) said gross domestic product (GDP) rose by 0.1% month-on-month in August and fell by 0.1% in July, in a revision to the previous estimate for no growth.

Most economists had been expecting expansion of 0.2% in August.

In the three months to August, GDP grew by 0.3% compared with 0.2% growth in the three months to July, the ONS added.

Liz McKeown, director of economic statistics at the ONS, said: “Services growth held steady, while there was a smaller drag from production than previously.

“Continued strength in business rental and leasing and healthcare were the main contributors to services growth, partially offset by weakness in some consumer facing services, while wholesalers also fared poorly.”

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