UK economy grew faster than expected in July
The UK economy grew by 0.4% in July, exceeding analyst expectations due to strong performance in the services sector and increased business adoption of AI. While experts note resilience, they warn that high energy prices may slow future growth.
Why it matters
Economic growth figures are critical indicators for national policy and investor confidence, especially regarding the integration of emerging technologies like AI.
Image source, Getty Images By Emer Moreau Business reporter Published 11 September 2026, 07:13 BST Updated 7 hours ago The UK's economy grew faster than expected in July partly helped by businesses using artificial intelligence (AI).
The economy expanded by 0.4%, the Office for National Statistics (ONS) said, whereas analysts had predicted no growth.
Growth in July was helped by a strong performance from the services sector, and particularly computer programming.
Experts said the figure showed the UK economy was proving resilient in the face of shocks such as the war in Iran, but they expect growth to slow in the months ahead as high energy prices affect households.
July's figure follows growth of 0.3% in June and zero growth in May.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in