UK Economy Surprises with 0.4% Growth Ahead of Budget

The UK economy has experienced a surprise boost of 0.4% growth in July, a welcome relief for Prime Minister Andy Burnham ahead of the upcoming Budget. According to figures published by the Office for National Statistics (ONS), this growth follows an increase of 0.3% in the three months leading up to June and no growth in May.

The ONS attributed the largest contributor to boosting GDP to a rise in computer programming, with evidence suggesting that businesses involved in AI and other technologies have also helped boost the sector.

Commenting on the figures, Liz McKeown, director of economic statistics at the ONS, stated that 'growth remained relatively robust in the latest three months', despite falls in both production and construction being partially offset by ongoing strength in the services sector.

The economy is still under pressure due to global uncertainty, particularly the conflict in the Middle East, which has led to a rise in oil prices above $100 a barrel. This could increase inflation worldwide, putting further strain on the UK economy.