Production output rose sharply while services flatlined and construction shrank, with the CBI warning that demand strength varies markedly across the economy.
The UK economy grew by just 0.1 per cent in August 2026, according to the Office for National Statistics — a modest headline figure that masks a sharp divide between sectors. Production output rose by 0.8 per cent and manufacturing by 1.2 per cent in the same month, while services recorded zero growth and construction output fell by 0.2 per cent.
The three-month picture was stronger, with GDP up 0.7 per cent in the period to August 2026. But the monthly data makes clear that production carried most of the weight, while services — the largest broad sector of the UK economy — contributed nothing to August’s growth figure.
Ben Jones, CBI Senior Lead Economist, said: “The messages coming from firms tell a story of an economy marked by contrasts. The strength of demand varies across sectors.”
The CBI’s wider assessment pointed to rising inflation and tighter financial conditions as risks that could make it harder for the economy to hold its momentum. The specific survey underpinning the CBI’s response could not be independently verified from available evidence, though the organisation publishes regular surveys covering industrial trends, distributive trades and services, with its next set of releases due on 22 and 28 October 2026.
So what does the data actually show? Production is pulling ahead, construction is sliding, and services — which normally anchor UK growth — are treading water. Whether that pattern holds into autumn will become clearer when the CBI’s October Growth Indicator is published on 28 October 2026.
Source: @CBItweets
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