UK Economy Surges 0.4% as Services Sector Leads Growth

The UK economy has rebounded from its challenging period, beating expectations with a surprise 0.4% growth in July.

According to the Office for National Statistics (ONS), this growth is a welcome boost after the economy flatlined in May and showed only 0.3% growth in June.

The services sector drove the increase, growing by 0.6%, while production and construction output fell by 0.5%. On a monthly basis, GDP rose by 0.4% in July.

Economists had expected the economy to flatline in July, but AI-related technology has helped boost the sector over the past three months, said ONS director of economics statistics Liz McKeown.