UK Economy Surges by 0.4% in July, Driven by AI and Services Sector Growth

The UK economy expanded by 0.4% in July 2026 compared to June, surpassing expectations of no growth. According to the Office for National Statistics (ONS), this is the fastest pace since February 2025.

Economists had anticipated a stagnant economy, but instead, the services sector rose by 0.4%, with manufacturing output growing by 0.9% and construction increasing modestly by 0.1%. The IT and consulting services sectors saw significant growth, rising by 4.4% over the three months ending in July.

Liz McKeown, director of economic statistics at the ONS, noted that computer programming made the largest contribution to service sector growth in July, with companies involved in artificial intelligence and related technologies supporting the sector.