UK GDP rose 0.4% in July, beating forecasts amid AI and heatwave boosts
The UK economy expanded by 0.4% in July, exceeding economist predictions of stagnation. Strong performance in services, particularly computer programming and artificial intelligence, drove the growth alongside favorable weather.
Latest figures from the Office for National Statistics show the United Kingdom economy grew by 0.4% in July. Economists had predicted no growth for the month. The expansion followed a 0.3% increase in June and zero growth in May.
The ONS director of economic statistics, Liz McKeown, stated that businesses involved with artificial intelligence and related technologies helped boost the sector. She noted evidence suggesting this trend extended through May and June as well. Other factors included a heatwave and the ongoing World Cup football tournament.
Service sector activity rose by 0.4%, accounting for most of the total expansion. Output in production increased by 0.2% and construction grew by 0.1%. Within services, growth occurred in eleven out of fourteen subsectors. Professional, scientific, and technical activities led with a 2.1% rise, driven largely by computer programming.
Richard Carter from Quilter Cheviot observed that further growth might be difficult to sustain, warning activity could stall ahead of the upcoming Budget.
