The UK economy expanded 0.4% in July on a month-on-month basis, significantly exceeding the consensus estimate of 0.0%, according to data reported on 11 September 2026. Year-on-year growth accelerated to +1.6%, against an expectation of +1.0%. The three-month growth rate of +0.4% marked the eighth consecutive period of expansion. Services led the three-month reading at +0.6%, while production and construction contracted over the same period. Sky Business additionally attributed part of the monthly strength to increased AI-related investment, while noting emerging energy supply constraints.
The Office for National Statistics released the data at 7am BST, alongside the July trade report. The GDP figures were the primary scheduled macro release for the UK on that date.
GBPUSD, the spot exchange rate between sterling and the US dollar, is directly affected by shifts in UK macroeconomic data of this magnitude, as GDP outcomes influence the Bank of England's policy assessments. The FTSE 100, which tracks the largest UK-listed companies across services, energy, and other sectors reported in the release, is also connected to the domestic growth reading.
Sources: investinglive.com, Guardian Business, SKY Business