UK economy beats forecasts with 0.4% growth in July – business live

UK GDP REPORT RELEASEDNewsflash: The last month of Sir Keir Starmer’s premiership ended with stronger than forecast growth.New data from the Office for National Statistics shows that the UK economy expanded by 0.4% in July alone, smashing forecasts that the economy would stagnate during the month.That follows growth of 0.3% in June 2026 and no growth in May 2026.The ONS says the growth in July was because of rises of 0.4% in services, of 0.2% in production and of 0.1% in construction.More to follow…Key events3m agoChart: UK GDP kept rising in July7m agoUK GDP REPORT RELEASED22m agoIntroduction: It's GDP DayOn an annual basis, real UK GDP is estimated to have grown by 1.3% in the three months to July 2026 compared with the same three months a year ago, the ONS reports.That’s relatively slow by historic standards, but consistent with the UK’s weak growth over the last gew years.Compared to the same month a year ago, GDP is estimated to be 1.6% higher in July 2026.Chart: UK GDP kept rising in JulyA chart showing UK GDP Photograph: LSEGUK GDP REPORT RELEASEDNewsflash: The last month of Sir Keir Starmer’s premiership ended with stronger than forecast growth.New data from the Office for National Statistics shows that the UK economy expanded by 0.4% in July alone, smashing forecasts that the economy would stagnate during the month.That follows growth of 0.3% in June 2026 and no growth in May 2026.The ONS says the growth in July was because of rises of 0.4% in services, of 0.2% in production and of 0.1% in construction.More to follow…Oil’s dipping this morning, with Brent crude down 2.1% to $105.32 a barrel.That follows news that Gulf foreign ministers plan to meet their Iranian counterpart in a push by Oman and Iran for a deal to temporarily manage shipping through the Strait of Hormuz….Introduction: It's GDP DayGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.We’re about to learn how the UK economy fared in July, during the summer heatwave.July’s GDP report is expected at 7am. And economists are not optimistic there was much growth during the month – the concensus forecast is that GDP will be unchanged compared to June,Over the last three months, that would slow growth to 0.3%, down from 0.4% in April-June, highighting the economic challenges facing chancellor John Healey.A poor GDP report could add to jitters in the markets, where government bonds suffered another sell-off yesterday.This sell-off pushed the yield, or interest rate, on 10-year UK government bonds to over 5.37% – the highest cost of borrowing since 2007.The agenda 7am BST: UK GDP report for July 7am BST: UK trade report for July 1.30pm BST: US CPI inflation report 3pm BST: University of Michigan’s US consumer confidence report