UK Economy Surprises with Stronger Growth, Pound Gets a Boost

The UK economy has surprised experts by growing more strongly than expected in July, providing a boost to the pound and fueling speculation about future interest rate decisions.

The services sector remained at the center of the expansion, recording solid monthly growth that helped offset some of the challenges facing other areas of economic activity.

Rising energy costs, however, continue to pose a significant threat to economic growth, adding pressure on businesses and households and complicating the outlook for monetary policymakers.