UK Economy Surprisingly Expands in July

2026-09-11 06:10 By Kyrie Dichosa 1 min. read

The UK economy expanded 0.4% month-on-month in July 2026, picking up from 0.3% growth in June and defying expectations of stagnation.

This marked the strongest expansion since February, as all three main sectors contributed, with services output rising 0.4%, production 0.2% and construction 0.1%.

Within services, the largest positive contribution came from administrative and support service activities, which rose 3.7%, driven by rental and leasing (7.9%), services to buildings and landscape (4%) and employment activities (2.5%).

Information and communication output also increased 2.4%.

These gains were partly offset by a 1% decline in wholesale and retail trade.

Meanwhile, production growth was supported by a 0.9% rise in manufacturing, while construction growth came solely from a 0.8% increase in repair and maintenance as new work fell 0.4%.

On an annual basis, GDP expanded 1.6%, the strongest growth since February 2025, accelerating from 1.1% in June and beating expectations of 1.2%.



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UK Economy Surprisingly Expands in July
The UK economy expanded 0.4% month-on-month in July 2026, picking up from 0.3% growth in June and defying expectations of stagnation. This marked the strongest expansion since February, as all three main sectors contributed, with services output rising 0.4%, production 0.2% and construction 0.1%. Within services, the largest positive contribution came from administrative and support service activities, which rose 3.7%, driven by rental and leasing (7.9%), services to buildings and landscape (4%) and employment activities (2.5%). Information and communication output also increased 2.4%. These gains were partly offset by a 1% decline in wholesale and retail trade. Meanwhile, production growth was supported by a 0.9% rise in manufacturing, while construction growth came solely from a 0.8% increase in repair and maintenance as new work fell 0.4%. On an annual basis, GDP expanded 1.6%, the strongest growth since February 2025, accelerating from 1.1% in June and beating expectations of 1.2%.
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The UK economy expanded by 0.1% month-on-month in May 2026, in line with market expectations and rebounding from a 0.1% contraction in April. Growth was driven solely by a 0.3% increase in services output, with professional, scientific and technical activities providing the largest positive contribution, supported by strength in scientific research and development and advertising services. Administrative and support services and health activities also advanced. These offset a 0.5% decline in production and a 0.8% fall in construction. In the three months to May, GDP grew 0.7%, marking a sixth consecutive three-month expansion, led by services, which rose 0.7%, while construction increased 1.6% and production edged up 0.1%. Compared with a year earlier, the GDP expanded 1.3%, below forecasts of 1.4% but marking the steepest growth since July 2025, and accelerating from a downwardly revised 1.1% increase in April.
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