UK economy defies forecasts with surprise 0.4% growth in July

The UK economy defied expectations in July with an unexpected 0.4% rise in GDP, surpassing forecasts of stagnation and June’s 0.3% growth. Analysts attribute the uptick to strong AI-driven expansion in the services sector, which appears to have offset economic strains linked to the conflict in Iran. The surprise growth offers a timely lift for the chancellor ahead of next month’s budget, where economic performance will be closely scrutinized. Official data from the ONS highlights how emerging technologies may be reshaping economic resilience amid geopolitical challenges.

Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout The UK economy grew in July as the rapid growth of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey before next month’s budget.Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June. City economists had forecast zero growth. Continue reading...