UK economy grows 0.1% in August and 0.7% over three months, while construction output falls 1.0%

The Office for National Statistics reported on 15 October that real GDP grew 0.1% in August 2026 and 0.7% in the three months to August, with services the only positive contributor, while construction output fell 1.0% over the same three months. Steadier growth gives the Bank of England less pressure to cut rates quickly, which tends to keep swap rates, and with them fixed mortgage pricing, from falling far. For buyers, this points to borrowing costs staying close to current levels in the near term rather than dropping sharply; for sellers, it strengthens the case for pricing to today's market rather than waiting for cheaper mortgages to lift demand. One month's figure is not a trend, and the Bank's next decision will also weigh the latest inflation data.