This is a slight improvement from the figure from July, which was originally estimated to have shown no change but was later revised to a decrease of 0.1%.
Services experienced no growth in August, while production grew by 0.4% and construction decreased by 0.3%.
The ONS said real GDP rose by 0.3% in the three months to August 2025 compared with the three months to May 2025, which is a small rise versus the growth of 0.2% in the three months to July 2025.
‘Not the kind of growth that improves lives’
Danni Hewson, head of financial analysis at AJ Bell, said: “Stuck is the word that the Treasury and Chancellor have consistently used to describe how many people feel about the UK economy. Even though the IMF forecast the UK to deliver the fastest growth out of all G7 countries except the US this year, it’s not the kind of growth that improves lives or that the government is hoping for.
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“Instead, the pace of growth has been decelerating, with the pre-tariff front-loading surge at the start of the year now a distant memory and the massively important service sector feeling the weight of consumer insecurity.
“In August, manufacturing provided a bright spot as the global supply chain continued to rebalance and trade deals restored a degree of confidence, but that rekindling of activity couldn’t fully offset a decline in construction work or a stalled service sector.”
She added: “Nervousness about the path of rate cuts and constant speculation about potential Budget changes put the brakes on the housing sector, but there was a surge in rental activity, which suggests would-be buyers are still cautious and hoping the government will come up with some kind of carrot that can help aspiring homeowners.
“A single month won’t come close to giving the real picture of what’s going on with the economy, with heightened uncertainty about global and domestic issues a concern in the longer term. The question is how the economy can find a higher gear when consumers are displaying an abundance of caution and businesses are lacking the confidence to move forward.”
