UK GDP Beats Forecasts with 0.4% Growth in July Driven by Services and Tech

Key Facts

In a move reflecting the resilience of the British economy against inflationary pressures, official data showed UK GDP growth accelerated to 0.4% month-on-month in July. According to reports, this figure significantly outperformed consensus expectations of zero growth, marking the eighth consecutive three-month expansion period. The growth was primarily underpinned by the services sector, which expanded by 0.4%, while the production and construction sectors grew by 0.2% and 0.1% respectively.

At the sub-sector level, manufacturing saw a notable rebound with 8 out of 13 sub-sectors expanding, led by a 5.2% surge in electronic and optical products. Per market data and analyst facts, computer programming and consultancy activities contributed substantially to the headline figure. The Office for National Statistics noted that firms involved in artificial intelligence and cloud computing reported strong turnover, helping offset a 1.0% decline in wholesale and retail trade.

Looking ahead, investors are monitoring whether this momentum can be sustained, though specific instrument prices are unavailable at this snapshot. The economic calendar shows markets are processing recent mixed signals from the UK, including a Construction PMI of 44.3 recorded in early September and a 0.2% decline in the House Price Index as of September 7, 2026. These growth figures remain a critical catalyst for assessing the Bank of England's future policy path.