Services-led growth pushes UK economy ahead of forecasts
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The Office for National Statistics reported that UK GDP expanded by 0.4% in the three-month period ending July, maintaining the previous quarter's growth rate while exceeding forecasts that had anticipated flat or minimal expansion. Monthly growth accelerated to 0.4% in July from 0.3% in June, with the services sector providing the primary driver of activity, particularly through computer programming and digital services.
The results offer a timely boost to government growth messaging, arriving days after Chancellor John Healey signalled optimism about economic prospects. However, the unchanged quarterly growth rate underscores the persistence of modest expansion rather than acceleration, suggesting the UK economy continues to advance incrementally despite facing broader structural headwinds.
- Three-month GDP growth held at 0.4% for July, outperforming economist forecasts of weaker expansion
- Services and digital sectors led growth, with computer programming the largest single contributor
- Monthly acceleration from 0.3% to 0.4% provides modest support to government economic narrative
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’
- The Independent — UK economy unexpectedly grows 0.4% in boost for Burnham
- The Guardian — UK GDP report to show if economy kept growing in July –business live
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