UK Economy Sees Growth Boost from Tech and Services

The UK economy grew by 0.4% in July, driven largely by technology and professional services, which increased output.

This growth is a welcome respite from previous stagnation, but it's not without its caveats: consumer-facing services declined by 0.4%, with retail trade falling by 0.5%. Accommodation output rose by 2.6%, but was insufficient to offset the weakness elsewhere.

The mixed picture extends beyond services, as production output rose by 0.2% in July, bolstered by a 0.9% increase in manufacturing. However, construction edged up by only 0.1%, driven by repair and maintenance work, while new construction fell by 0.4%.

The Bank of England's assessment notes that inflation is likely to rise as higher global energy costs reach household bills, transport, and supply chains. The central question remains whether Britain can generate sustained growth, particularly in wages, investment, housing, and everyday commerce.