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Britain’s Economy Unexpectedly Grew 0.4% in July
Britain's economy expanded by 0.4% in July, surpassing economists' predictions of no growth, according to figures The ONS released on Friday.
This performance extends momentum from the first half of 2026, when Britain's economy grew by 1%, the fastest growth among the Seven large advanced economies.
Output rose 1.6% annually, the fastest rate since February 2025, as expansion in services, production, and construction sectors contributed to growth following 0.3% in June.
Governor Andrew Bailey told a parliament committee earlier this week that economic data had come in "a bit stronger" than expected, referencing the Bank's 1.1% annual growth forecast.
The Bank projects inflation will rise to around 3.2% later this year as ongoing conflict pushed oil prices above $105 a barrel, pressuring government borrowing costs.