UK economy beats expectations in July amid AI boom; four interest rate hikes expected by next summer – business live

Newsflash: The last month of Sir Keir Starmer’s premiership ended with stronger than forecast growth. New data from the Office for National Statistics shows that the UK economy expanded by 0.4% in July alone, smashing forecasts that the economy would stagnate during the month. That follows growth of 0.3% in June 2026 and no growth in May 2026.

The ONS says the growth in July was because of rises of 0.4% in services, of 0.2% in production and of 0.1% in construction.