UK GDP rises 0.4% in July as AI‑driven services boost growth
The Office for National Statistics reported that the UK economy expanded by 0.4% in July, beating expectations of flat performance. Growth was led by a rise in services output, with computer programming and AI‑related activities singled out as the top performers. Production output increased by 0.2% and construction by 0.1%, while retail and hospitality saw declines amid higher energy bills and mortgage rates.
Chancellor John Healey highlighted the resilience of the economy, and Transport Secretary Heidi Alexander noted the result ahead of the upcoming Budget. The data were released after Andy Burnham entered No 10 on 20 July.
Why it matters
The unexpected growth suggests the UK economy can still expand despite pressures on households and may shape upcoming fiscal and monetary decisions.
How this story developed
- Sep 3 Coventry Building Society to Raise Fixed Mortgage Rates for All Customers Starting Monday
- Sep 8 Average fixed‑rate mortgage figures have risen to 5.63% (two‑year) and 5.68% (five‑year) while house‑price growth turned negative in August.
- Sep 11 July 2026 data show the UK economy grew by 0.4%, beating expectations of no change, driven mainly by services and AI-related activity.
- Sep 11 Andy Burnham entered No 10 on 20 July.
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