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UK Economy Surges Faster Than Expected in July
Confirmed
In Short: The UK economy expanded by 0.4% in July, outperforming forecasts, according to the Office for National Statistics (ONS).
The economy grew faster than expected, expanding by 0.4% in July, compared to the 0.3% growth in June and zero growth in May, as reported by the ONS.
However, the ONS noted that consumer-facing services like retail and hospitality saw a contraction in July, following earlier increases in activity during the summer.
Paul Dales, chief UK economist at Capital Economics, commented, 'The resilience of the economy in the first half of the year continued into the second half,' indicating a sustained positive trend.
Despite the positive growth, the ONS director of economic statistics, Liz McKeown, warned that growth is expected to slow in the coming months due to high energy prices affecting households.
What's confirmed
- The economy grew faster than expected, expanding by 0.4% in July, compared to the 0.3% growth in June and zero growth in May, as reported by the ONS.
- However, the ONS noted that consumer-facing services like retail and hospitality saw a contraction in July, following earlier increases in activity during the summer.
- Paul Dales, chief UK economist at Capital Economics, commented, 'The resilience of the economy in the first half of the year continued into the second half,' indicating a sustained positive trend.
- Despite the positive growth, the ONS director of economic statistics, Liz McKeown, warned that growth is expected to slow in the coming months due to high energy prices affecting households.
What's still developing
- The economy expanded by 0.4%, the Office for National Statistics (ONS) said, whereas economists had predicted no growth.
- Experts said July's growth figure showed the UK economy was proving resilient in the face of shocks such as the war in Iran, but said they expected growth to slow in the months ahead as high energy prices affect households.
- According to the ONS director of economic statistics, Liz McKeown, there was evidence that businesses involved with artificial intelligence and related technologies helped to boost the sector, not just in July but in May and June as well.
- She also said some businesses had said that the warm weather and football world cup had affected activity in July, although she said the effects "differed across industries, benefitting some businesses while creating challenges for others".
- The ONS said that in the three months to July, which gives a better underlying picture, the economy grew by 0.4% compared with the previous three months.
- The UK's economy grew faster than expected in July partly helped by investment in artificial intelligence (AI), latest official figures have shown.
- Tight financing conditions, rising costs and an uncertain outlook are weighing on investment and confidence, making it harder for the economy to gain any real momentum.
- The UK economy registered a surprise 0.4% uplift in July, largely thanks to growth the services sector over the month.