UK Economy Beats Forecasts Despite Uneven Recovery

The UK economy has beaten expectations with a 0.4% growth in the three months to July, driven by a 0.6% increase in services output.

eToro market analyst Lale Akoner said the economy had 'started the summer on a stronger footing than expected', but warned that growth remains uneven, with production and construction falling 0.5% over the same period.

The recovery is still inconsistent, with some sectors showing resilience while others struggle. Professional, scientific, and technical activities were among the strongest performers, with computer programming, consultancy, and related activities rising 3.5% in July, driven by artificial intelligence and cloud computing investments.

Aberdeen economist Felix Feather said economic data has repeatedly exceeded expectations, with activity holding up surprisingly well despite the energy cost shock.