UK Economy Expands 0.4% in July as US CPI Looms

The UK economy expanded by 0.4% in July, exceeding expectations of no growth, according to figures released by the Office for National Statistics (ONS). This follows 0.3% growth in June and no growth in May.

Services growth was 0.4%, while production and construction saw growth of 0.2% and 0.1% respectively. The ONS director of economic statistics, Liz McKeown, said that growth remained relatively robust in the latest three months.

The economy also grew 0.4% in the three months to July compared with the previous three months. Within services, computer programming was the largest contributor, continuing strong growth seen throughout the year, and research and development and rental and leasing helped drive growth.

Looking ahead, attention will turn to the US consumer price index for August, which could decide if the Fed hikes rates next week. Currently there is a 67% chance of a hike, down from 71% on Thursday.