UK economy unexpectedly grew by 0.4% in July

The UK economy unexpectedly grew by 0.4% in July following a boost from the services industry and businesses increasing the use of AI, official figures show.

The Office for National Statistics (ONS) released the latest gross domestic product (GDP) data, which was up from a 0.3% growth rate in June.

It marks a surprise uplift after economists were expecting the economy to show zero growth for the month.

The ONS said the services sector drove growth in July, with output increasing by 4%, and computer programming making the largest contribution.

Artificial intelligence (AI) and related technology has helped to boost the sector over the past three months, according to the ONS.

ONS director of economics statistics Liz McKeown said: “Separately, as in June, some businesses reported that the warm weather and FIFA World Cup had affected their activity, although effects differed across industries, benefitting some businesses while creating challenges for others.”