UK Economy Unexpectedly Grows 0.4% in July

The UK economy grew by 0.4% in July, according to the Office for National Statistics, defying expectations of zero growth from most economists and offering a lift to the government weeks before its autumn Budget. The figure follows growth of 0.3% in June and no growth in May. The services sector drove the expansion, with output rising 0.4% in the month. Computer programming made the largest contribution, and the ONS said there was evidence that businesses involved with artificial intelligence and related technologies helped boost the sector, not only in July but in May and June as well. Many of the businesses reporting their largest turnover in July were involved in activities related to AI and cloud computing, according to the statistics office. Production output rose 0.2%, helped by growth in manufacturing and in water supply, including sewerage and waste management, while construction increased 0.1%, supported by housing repair and maintenance work. ONS director of economic statistics Liz McKeown said research and development and rental and leasing also helped drive growth, while wholesaling saw a notable fall.