UK GDP Surges 0.4% in July Amid AI Boom

The UK economy has shown remarkable resilience in the face of prevailing risks, with GDP growing by 0.4% month-over-month (MoM) in July, outpacing the 0% consensus forecast.

This marks the fastest pace of expansion since February and highlights the significant contribution of the IT sector to economic growth, which accounts for around half of the gain.

The boom in AI infrastructure spending appears to be having a positive impact on the economy, but sterling reacted little to the data release, with investors instead focusing on the upcoming US CPI report.