11.09.202606:10:15UTC+00UK Economy Surprisingly Expands in July

The UK economy grew by 0.4% month-on-month in July 2026, up from 0.3% in June and outperforming expectations of flat growth. This was the strongest monthly expansion since February, with all three main sectors contributing: services output rose 0.4%, production 0.2%, and construction 0.1%.

Within services, the largest positive contribution came from administrative and support service activities, which increased by 3.7%. This was driven by strong gains in rental and leasing (7.9%), services to buildings and landscape (4%), and employment activities (2.5%). Information and communication output also recorded solid growth of 2.4%. These gains were partly offset by a 1% decline in wholesale and retail trade, and in the repair of motor vehicles and motorcycles.

Production growth was underpinned by a 0.9% rise in manufacturing. In construction, overall growth was entirely driven by a 0.8% increase in repair and maintenance work, as new work contracted by 0.4%.

On an annual basis, GDP expanded by 1.6% in July, the fastest pace since February 2025.