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Fri, 11 Sep 2026

Fri, 11 Sep 2026 AI boom helps drive surprise UK growth in July

The economy expanded by 0.4%, official figures show, whereas analysts had predicted no growth.

* The UK economy grew by 0.4% in July, beating analyst expectations of no growth.
* The services sector, particularly computer programming, was a key driver of growth.
* Artificial intelligence (AI) is believed to have contributed to growth, with many IT businesses reporting large turnovers and being involved with AI technologies.
* However, experts expect growth to slow down due to high energy prices affecting households and businesses.
* The economy has shown resilience in the face of global shocks such as the war in Iran, but economists warn that higher borrowing costs will soon start to impact growth.
* Chancellor John Healey said the economy is demonstrating a welcome resilience despite global uncertainty.
* Shadow chancellor Andrew Griffith criticized the government's handling of the economy, pointing out high unemployment and government borrowing rates.
* Economists expect interest rates to rise in the near future due to inflation concerns and the impact of higher energy prices on household budgets.