UK Economy Surges Ahead with 0.4% Growth in July

The UK economy surprised analysts by growing 0.4% in July, according to the Office for National Statistics (ONS).

This comes as forecasters predicted a halt in economic growth due to consumers swapping shopping for social activities like outdoor events and drinking at pubs during the heatwaves and FIFA World Cup.

The unexpected growth was led by the services sector, which saw a boost from AI, and contradicts economists' predictions that activity would be muted in July as other parts of the economy lagged.

Analysts for Investec and Deutsche Bank had predicted a weaker performance in the third quarter, citing soft retail sales and rising household utility bills due to the 13% energy price cap uplift.