UK economy grew 0.1% in August: What is it?

Business Oct 16, 2025

The UK economy inched up by 0.1% this August, just enough to bounce back from July's small decline.
This matches what experts expected, and the Bank of England (BoE) now thinks the economy will grow a bit more—0.4%—for the whole third quarter.
Even with inflation sticking around and growth staying slow, the BoE kept interest rates steady at 4% last month.

Unemployment at its highest since 2021

Job numbers aren't looking great—unemployment is at its highest since 2021, and pay growth in the private sector has slowed.
The central bank's choices on rates and forecasts are all about keeping the economy steady while people deal with these challenges.