The United Kingdom's economic growth remained unchanged at 0.4% in the three months leading up to July, mirroring the rate seen in the previous quarter, according to the Office for National Statistics (ONS). This figure was released days after Chancellor John Healey expressed optimism about the UK economy, stating it was "turning a corner" and that his mission was to "make Great Britain growth Britain" again.
The services sector proved to be the main contributor to economic expansion, growing by 0.6% over the three-month period. This growth was largely propelled by the computer programming industry, which has shown consistent strength throughout the year, with businesses involved in artificial intelligence and related technologies playing a significant role. Research and development and rental and leasing activities also contributed to the upward trend.
Conversely, both the production and construction sectors experienced a contraction, falling by 0.5% during the same period. Wholesaling also saw a notable decline.
In the latest monthly figures for July, services again led the growth, with computer programming being the primary driver. This occurred as Prime Minister Andy Burnham took office in July.
Some businesses reported that the warm weather and the FIFA World Cup influenced their operations in July, similar to June. While these factors benefited certain industries, they presented challenges for others, with effects varying across different sectors.
In June, the UK economy had grown by 0.3%, partly due to a boost in hospitality and leisure from football-related events and sustained hot weather. This contributed to a 0.4% GDP expansion for the second quarter of the year. However, economists had anticipated a slowdown in July's activity as other economic areas lagged, offsetting the continued benefits to hospitality from the World Cup and favorable weather conditions.