UK Economy Defies Forecasts with Surprise Growth

The UK economy posted a surprise 0.4% growth in July, exceeding forecasts of zero growth.

According to figures from the Office for National Statistics (ONS), the GDP increase was driven by expansion in the services sector, particularly admin services and computer programming and consulting.

Within the latter sector, many businesses with significant turnover in July were involved in artificial intelligence and cloud computing activities.

Economists attribute the growth to the rapid development of AI, which outweighed the economic damage from the Iran war.

The ONS also reported a 0.2% increase in industrial production in July, with manufacturing output offsetting falls in mining, electricity and gas supply.