The UK economy grew by 0.1% in August 2026, beating forecasts of a 0.1% fall. New Office for National Statistics (ONS) figures, released on 15 October, show a small rise after July’s 0.4% growth. The news matters to UK firms, from tech start-ups to shops, builders and service providers. Yet the gains were far from even. Output was 2.1% above August 2025.
What Drove UK Economic Growth in August?
Production rose by 0.8% in August, helped by a 1.2% rise in manufacturing. This was the main reason GDP, which measures the size of the economy, grew that month.
Services showed no monthly growth. Construction fell by 0.2%, its fourth monthly fall in a row. Consumer-facing services, such as shops and leisure firms, fell by 0.3%. Food and drink services fell by 2.7%.
The wider picture was better. GDP grew by 0.7% in the 3 months to August. Services rose by 0.9% over that period. But production fell by 0.2%, while construction fell by 1.0%.
How Did AI and UK Technology Firms Perform?
Technology was a key part of the three-month rise. Information and communication services grew by 2.8%. Computer programming, consultancy and related work rose by 5.0%. The same field grew by 1.1% in August alone.
AI-linked demand and software work have drawn fresh attention to the sector. But the ONS did not give a separate figure for AI’s share of GDP. It would be wrong to say AI alone drove August’s growth.
For tech firms, the news shows strength in their wider sector. It does not mean every firm will see higher sales.
What Happened to Accounting and Research Services?
Professional, scientific and technical services grew by 2.8% over the same three months.
Within that group, accounting, bookkeeping, auditing and tax consultancy grew by 5.5%. Scientific research and development grew by 4.9%.
These figures show stronger output in those fields. They do not prove why clients used more services or what caused that growth.
What Do the Trade Figures and IMF Forecast Show?
The UK’s monthly trade gap fell to £920 million in August, down from £2.32 billion in July. Imports fell by 1.5% to £83.25 billion. Exports edged up by 0.1% to £82.33 billion.
Yet the trade gap widened to £8.0 billion over the three months to August. So, one better month does not mean trade risks have gone.
On 13 October, the International Monetary Fund (IMF) raised its UK growth forecast for 2026 to 1.3%, from 1.0%. The next key date is the Autumn Budget on 28 October. No new tax measures should be treated as final before they are announced.
What Should UK Business Owners Do Now?
This news affects small firms, tech founders, exporters and firms that rely on customer spending. The risk of ignoring it is not a new fine. It is making plans based on a headline rather than your own costs and sales.
Check cash flow, review spending and set money aside for tax. If your firm builds software or uses AI, check whether any research work meets HMRC rules for R&D tax relief. Using AI alone does not make a project eligible.
How Can Lanop Help You Prepare for the Next Economic Shift?
Lanop Business & Tax Advisors helps UK firms with accounts, tax planning, cash flow and R&D claims. Our team can help you check your own figures and plan with care. Speak to Lanop for clear advice before your next business move. The next ONS GDP update is due on 12 November 2026.
