Technology

UK economy unexpectedly grows 0.4% in July boosted by AI

The Guardian Technology · 11 September 2026 at 09:10

UK economy unexpectedly grows 0.4% in July boosted by AI

Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout The UK economy grew in July as the rapid expansion of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey.

Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June.

City economists had forecast zero growth.

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UK economy unexpectedly grows 0.4% in July boosted by AI

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