# Services-led growth pushes UK economy ahead of forecasts

- URL: https://talkfuse.com/story/uk-economy-grows-0-4-in-july-defying-expectations-of-stagnation/
- Published: 2026-09-11T08:08:43+00:00
- Updated: 2026-09-11T14:19:04+00:00
- Topics: Americas, Art, Business, Culture, Economy, Markets, Politics, UK, World

## Key points

- UK GDP grew 0.4% in July, beating forecasts of zero growth
- Services sector drove the surprise expansion
- Analysts warn energy costs, borrowing costs and the Budget threaten momentum

## Summary

The UK economy grew by 0.4% in July, comfortably beating economists' consensus forecast of no growth at all, prompting a broadly positive reaction from analysts at Capital Economics, the CBI and Quilter Cheviot. The figures extend the resilience seen through the first half of the year, with Britain's economy proving sturdier than expected despite the Middle East conflict, though commentators generally cautioned that this momentum may not be sustained given a number of headwinds building on the horizon.

Growth was recorded across all three main sectors, with services once again doing the bulk of the work, while production and construction showed a weaker picture over the three months to July. Analysts flagged rising household energy bills, higher borrowing costs, a global bond-market sell-off and uncertainty ahead of the Budget as risks to future activity, noting that monthly growth has been uneven, including a 0.1% contraction earlier in the period.

## Coverage

- [Daily Mail: UK economic growth revealed to be unchanged at 0.4% – days after Chancellor insisted he wanted to ‘make Great Britain growth Britain’](https://www.dailymail.com/news/article-16122795/UK-economic-growth-unchanged-Chancellor.html?ns_mchannel=rss&ns_campaign=1490&ito=1490)
- [The Independent: UK economy unexpectedly grows 0.4% in boost for Burnham](https://www.independent.co.uk/news/uk/politics/uk-economy-gdp-grows-burnham-healey-budget-b3048382.html)
- [The Guardian: UK GDP report to show if economy kept growing in July –business live](https://www.theguardian.com/business/live/2026/sep/11/uk-gdp-report-economy-july-bonds-pound-ftse-john-healey-latest-news-updates)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.