The UK's real GDP saw a modest increase of 0.1% in August 2025, recovering from a revised 0.1% decrease in July, which aligned with market predictions. Production output rose by 0.4%, bouncing back from the previous month's 0.4% dip. This growth was mainly attributed to gains in manufacturing, which saw a 0.7% increase, alongside a 0.4% rise in electricity, gas, steam, and air conditioning supply. Additionally, water supply, sewerage, waste management, and remediation activities experienced a 0.3% growth. However, these improvements were partially negated by a 2.3% decline in the mining and quarrying sector.
For the second consecutive month, the services sector remained stagnant overall. Notable expansions in administrative and support services, which grew by 1.0%, and human health and social work activities with a 0.4% increase, were offset by drops in specific sectors. These included wholesale and retail trade; vehicle repair (down 0.5%), the arts, entertainment, and recreation sector (down 2.4%), and transport and storage (down 0.7%). Furthermore, construction output decreased by 0.3%, having previously shown no growth, as repair and maintenance activities declined by 1.5%.
