(MENAFN) The British economy expanded by 1.3% in August, according to data released Thursday by the Office for National Statistics (ONS), falling short of analysts’ projections.

While the figure landed in line with some market expectations, it came alongside a revision of July's GDP growth to 1.5%, up from previous estimates. On a monthly basis, gross domestic product (GDP) ticked up by 0.1%, mirroring forecast levels.

Sector performance was mixed. Monthly production output rose 0.4%, while the services sector registered no growth. Meanwhile, construction output contracted 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.

Over the three-month period ending in August, the services sector advanced by 0.4%, and construction rose by 0.3%, while production dipped by 0.3%, underlining persistent volatility across industries.

Industrial production returned to growth in August, rising by 0.4% month-on-month — a sharp turnaround from a previously revised 0.4% decline in July. The increase exceeded market expectations.

Driving the rebound were gains in the pharmaceuticals sector, up 3%, manufacturing, up 0.7%, and electricity and gas, which rose 0.4%. In contrast, mining and quarrying output declined 2.3% on the month.

Despite the rebound in some sectors, the broader picture suggests a fragile recovery as the UK economy grapples with uneven momentum heading into the final quarter of 2025.

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