UK GDP rises 0.4% in July, driven by artificial intelligence sector growth
Britain's economy expanded unexpectedly in July as computer programming and consulting services led the surge. Officials note AI-related businesses are boosting turnover across multiple quarters despite ongoing regional conflict.
The Office for National Statistics reported that the UK gross domestic product (GDP) grew by 0.4% in July. City economists had forecast zero growth for the month. The ONS director of economic statistics, Liz McKeown, stated that businesses involved with artificial intelligence and related technologies helped boost sector activity not just in July but also in May and June. Within the services sector, which expanded by 0.4%, computer programming and consulting showed strong performance. Many reporting companies had large turnovers linked to artificial intelligence and cloud computing activities. Martin Beck of WPI Strategy described this as productivity-enhancing spending needed at a time when traditional parts of the economy remain subdued. Conversely, McKeown noted that warm weather and the football world cup affected some business activity in July, though these effects varied across industries. High energy prices resulting from the Iran war continue to influence interest rates and household costs, with experts expecting growth to slow in coming months.
