UK Economy Exceeds Forecasts with **0.4%** GDP Growth in **July**
| Pair | Now | Since publish |
|---|---|---|
| GBPUSD | — | — |
- UK GDP grew 0.4% in July, beating 0.0% forecast.
- Services sector drove July’s 0.4% growth; construction up 0.1%.
- July’s 0.4% growth accelerates from June’s 0.3%, follows May’s 0%.
The United Kingdom’s economy unexpectedly grew by 0.4% month-over-month in July, according to data from the Office for National Statistics (ONS). This figure significantly exceeded market forecasts of 0.0% growth and followed a 0.3% expansion in June. Additional data revealed Industrial Production rose by 0.2% and Manufacturing Production increased by 0.9% during the same period. This resilience was observed despite rising household energy costs and broader global economic pressures, including elevated oil prices. The positive economic indicators prompted buying interest in the Pound Sterling, with the GBP/USD pair seeing gains. Over the three months to July, the economy maintained its growth pace, marking the eighth consecutive period of expansion, primarily driven by the services sector.
New data reveals the UK economy’s 0.4% expansion in July was primarily driven by a 0.4% growth in the dominant services sector and a 0.1% rise in construction output. This marks an acceleration from June’s 0.3% growth, following no growth recorded in May.