Chronological coverage updated 11th September 2026 09:10.
Update 1 · 11th September 2026
UK Economy Beats Forecasts with 0.4% GDP Growth in July Driven by AI Expansion
The UK economy posted unexpected growth in July, expanding by 0.4% according to official economic data released by the Office for National Statistics (ONS).
The figure represents an acceleration from the 0.3% gross domestic product (GDP) growth recorded in June, defying expectations from City economists who had predicted zero growth for the month.
UK gross domestic product grew by 0.4% in July, up from 0.3% in June and surpassing economist forecasts of zero growth. — according to Office for National Statistics.
Drivers of Economic Expansion
Rapid development and adoption of artificial intelligence within the UK services sector served as the primary driver of monthly growth. The surge in AI-related activity outweighed the economic drag and damage resulting from the ongoing war in Iran, delivering a welcome boost for Chancellor John Healey.
- UK GDP grew by 0.4% in July, outperforming market expectations of stagnation.
- Services sector expansion driven by AI adoption offset economic disruptions from the Iran war.
