UK economy beats expectations in July with 0.4% growth

Britain's economy grew by a stronger than expected 0.4 percent in July. This performance extended the strong showing seen in the first half of the year. Services sector strength offset falls in production and construction, with AI aiding software development. The economy expanded by one percent in the first half of 2026, fastest among G7 nations. Bank of England forecasts 1.1 percent growth for 2026, with inflation expected to rise.

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