UK economy grew faster than expected in July
The UK economy grew by 0.4% in July, exceeding economist expectations of zero growth. This expansion was largely driven by the services sector, with notable contributions from artificial intelligence and related technology businesses.
Why it matters
The unexpected growth provides a brief positive signal for the UK economy, though analysts warn that future performance remains uncertain due to upcoming budget decisions and geopolitical tensions.
Image source, Getty Images By Emer Moreau Business reporter Published 11 September 2026, 07:13 BST Updated 3 minutes ago The UK's economy grew faster than expected in July, latest official figures have shown.
The economy expanded by 0.4% in the month, the Office for National Statistics (ONS) said, whereas economists had predicted no growth.
The expansion was helped by a strong performance from the services sector, and particularly computer programming.
It follows growth of 0.3% in June and zero growth in May.
According to the ONS director of economic statistics, Liz McKeown, there was evidence that businesses involved with artificial intelligence and related technologies helped to boost the sector, not just in July but in May and June as well.
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