UK Economy Grows 0.4% in July as AI Offsets Iran War Shock
Updated
Updated · The Guardian · Sep 12
UK Economy Grows 0.4% in July as AI Offsets Iran War Shock
3 articles · Updated · The Guardian · Sep 12
Summary
Britain’s GDP rose 0.4% in July after 0.3% growth in June, beating forecasts for no growth and giving Chancellor John Healey a lift before his 28 October budget.
ONS said services grew 0.4%—led by computer programming, consulting and administrative services—while industrial production added 0.2%; firms with the biggest July turnover were tied to AI and cloud computing.
Oil above $100 a barrel has still raised energy costs and rate expectations, with markets now pricing in four quarter-point Bank of England increases over the next 12 months, though rates are expected to stay at 3.75% next week.
Higher borrowing costs may already have erased at least half of the £24 billion fiscal headroom inherited by Healey, increasing pressure for tax rises or spending cuts despite what ministers call resilient growth.