The British pound ticked higher after official data showed the UK economy grew 0.4% in July, a number that made forecasters look overly cautious. Economists had predicted zero growth for the month.
Sterling rose roughly 0.1% to $1.352 on the release.
The numbers behind the surprise
July’s month-on-month GDP expansion of 0.4% wasn’t just better than the flat-line consensus. It also pushed the year-on-year growth rate to 1.6%, well above the 1.2% economists had penciled in and the strongest annual reading since February 2025.
The three-month growth rate through July came in at 0.4% as well.
