UK GDP rises 0.4% in July, outpacing stagnant forecasts

According to the Office for National Statistics, the United Kingdom’s economy expanded by 0.4% in July, defying predictions that output would stagnate. The increase followed a 0.3% gain in June and zero growth in May. Service industries led the surge, posting a 0.4% rise, with production and construction adding 0.2% and 0.1% respectively.

Liz McKeown, director of economic statistics, highlighted that AI-driven computer programming was the top performer, reinforcing a year-long trend of tech-sector strength. Additional boosts came from warmer weather and England’s progress in the men’s World Cup, which affected demand unevenly across industries. On an annual basis, real GDP is estimated to be 1.3% higher than a year earlier, while July’s level is 1.6% above the same month last year.