# UK economy unexpectedly grows 0.4% in boost for Burnham

- URL: https://talkfuse.com/story/uk-economy-unexpectedly-grows-0-4-in-boost-for-burnham/
- Published: 2026-09-11T06:57:14+00:00
- Updated: 2026-09-11T13:05:32+00:00
- Original publisher: The Independent (publisher lean: Left)
- Original article: https://www.independent.co.uk/news/uk/politics/uk-economy-gdp-grows-burnham-healey-budget-b3048382.html
- Topics: Business, Economy, Politics, UK, World

## Key points

- UK GDP grew 0.4% in July, beating forecasts of zero growth
- Services sector, boosted by AI and computer programming, led the gains
- Manufacturing rose but wider production sector shrank over three months
- Budget submissions urge tax and cost relief for businesses ahead of October Budget

## Summary

The UK economy grew by 0.4% in July, confounding economists who had forecast no growth at all and providing a welcome boost for the government ahead of the autumn Budget. The Office for National Statistics said growth accelerated from 0.3% in June, driven mainly by the services sector, with computer programming making the largest contribution amid increased use of artificial intelligence. Chancellor John Healey pointed to the figures as evidence of an "optimistic story" of an economy "turning a corner", though analysts cautioned that momentum could stall as businesses turn cautious in the run-up to the Budget.

Services output rose 0.6% across the three months to July, while the production sector contracted by 0.5% over the same period, even as manufacturing itself rose by 0.5%, led by computer, electronic and optical products and machinery. The ONS's Liz McKeown noted that, as in June, warm weather and the FIFA World Cup had affected business activity, with mixed effects across industries. Analysts at Quilter Cheviot welcomed the surprise strength but warned growth had been inconsistent across sectors, while the British Chambers of Commerce urged ministers to use the mid-October Budget to cut employer National Insurance for under-25s, ease energy and business rates costs, and bolster export support.

## Coverage

- [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 economy defies forecasts with surprise 0.4% growth in July](https://www.theguardian.com/business/2026/sep/11/uk-economy-defies-forecasts-with-surprise-04-growth-in-july)

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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.