The UK’s financial exercise expanded by 0.1% month-on-month in August 2025, reversing a revised 0.1% contraction in July, as manufacturing output offset weak spot in different sectors of the economic system.

Key Factors from the August GDP Report

• Month-to-month GDP grew 0.1%, in keeping with consensus expectations, following a downwardly revised -0.1% decline in July (beforehand reported as flat)
• Manufacturing sector led the enlargement with a 0.4% improve, whereas companies was unchanged at 0.4%, and development fell by 0.3%
• Three-month rolling GDP development accelerated to 0.3% (June-August) from 0.2% within the three months to July, suggesting modest underlying momentum
• Annual GDP development eased to 1.3% from 1.5% in July, indicating some lack of momentum on a year-over-year foundation
• Providers remained a most important development driver over the three-month interval, increasing 0.4%, with development including 0.3% whereas manufacturing fell 0.3%

Hyperlink to the August 2025 ONS GDP Month-to-month Estimate

The combined sectoral efficiency highlighted the uneven nature of the U.Okay.’s financial restoration.

Whereas the headline determine met expectations, the flat companies studying was regarding, on condition that the sector accounts for roughly 80% of the U.Okay. economic system. The downward revision to July’s information additionally steered the economic system had much less momentum getting into the third quarter than initially thought.

Market Reactions

British pound vs. Main Currencies: 5-min

Overlay of GBP vs. Main Currencies Chart by TradingView

The pound, which had been taking cues from countercurrencies, dipped throughout the board when the report hit, although losses have been shallow. It fell probably the most in opposition to the stronger Aussie, however largely stayed inside 0.10% an hour after the discharge. Thirty minutes later, the transfer light, and the foreign money began climbing once more.

Easing political jitters in France and renewed deal with a doable Fed charge minimize boosted danger urge for food in Europe, giving GBP a elevate earlier than the US session pulled it in several instructions.

The European session’s beneficial properties additionally recommend that markets had positioned for probably weaker information, making the in-line studying a reduction. Moreover, the truth that the economic system returned to development after July’s contraction helped ease instant recession fears, though the underlying image remained combined.

By the tip of the day, the pound completed combined, buying and selling decrease in opposition to the euro, franc, and yen, however stronger versus the greenback and commodity currencies just like the Aussie, Kiwi, and Loonie.