UK economy grew 0.4% in July as services led a broad monthly rise

The UK economy grew by 0.4% in July 2026, according to the Office for National Statistics. Services, production and construction all recorded monthly growth.

This followed growth of 0.3% in June and no growth in May. The figures provide a firmer start to the third quarter, but one month of data does not establish a lasting trend.

Verified facts

Services output increased by 0.4% in July. Production grew by 0.2%, while construction output edged up by 0.1%.

Across the three months to July, GDP grew by 0.4% compared with the three months to April. This was the eighth consecutive period of three-month-on-three-month growth.

Services grew by 0.6% over that period, while production and construction each fell by 0.5%.

Compared with July 2025, monthly GDP was 1.6% higher. GDP in the three months to July was 1.3% higher than in the same period a year earlier.

What drove July's growth?

Administrative and support service activities grew by 3.7%, while information and communication output increased by 2.4%.

Computer programming, consultancy and related activities grew by 3.5%. The industry contributed 0.14 percentage points to services growth and 0.12 percentage points to overall GDP growth.

The ONS said some large respondents reported activity linked to artificial intelligence and cloud computing. It also cautioned that the precise contribution from these activities cannot be quantified.

Wholesale and retail trade, including vehicle repair, fell by 1.0%. Wholesale trade declined by 1.4% and subtracted 0.05 percentage points from GDP growth.

Manufacturing output rose by 0.9%, but mining fell by 4.4% and electricity and gas output declined by 1.5%. In construction, repair and maintenance grew by 0.8%, while new work fell by 0.4%.

The Apolifina view

July's expansion was broader than a headline driven by one sector alone. All three major sectors grew during the month, and services remained the main source of momentum.

That is encouraging, but the three-month figures show a less even economy. Production and construction both contracted across the latest three months, leaving services to carry overall growth.

For investors, the data may support confidence that UK activity entered the third quarter with momentum. It does not, by itself, determine the outlook for interest rates, company profits or market prices. Inflation, wages, fiscal policy and future revisions remain important.

Uncertainty and revisions

Monthly GDP is an early estimate and can be revised as more information becomes available. The ONS said no periods were open for revision in this release.

The next monthly GDP release, scheduled for 15 October 2026, will incorporate Blue Book 2026 and revisions from the quarterly national accounts. This could alter the historical path of growth.

Survey response rates for July were 84.6% for services, 86.5% for production and 80.0% for construction. Estimates for missing responses are imputed and may later be replaced with reported data.

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