The UK's economic growth rate held steady at 0.4 percent in the three months leading up to July, mirroring the growth recorded in the previous three-month period, according to the Office for National Statistics (ONS). This figure comes days after Chancellor John Healey expressed optimism about the economy turning a corner and stated his aim to "make Great Britain growth Britain."
The services sector contributed positively, growing by 0.6 percent. However, this was counteracted by a 0.5 percent decrease in both production and construction industries.
ONS director of economic statistics Liz McKeown noted that overall growth remained "relatively robust" due to the ongoing strength in services. She highlighted computer programming as a significant contributor, continuing a trend of strong growth throughout the year, with businesses involved in AI and related technologies playing a role. Research and development and rental and leasing also supported growth, while wholesaling experienced a notable decline.
In July alone, services continued to drive growth, with computer programming again being the largest contributor. The ONS also reported that some businesses indicated the warm weather and the FIFA World Cup affected their operations in July, similar to June, with impacts varying across industries.
Prime Minister Andy Burnham was appointed in July. The economic figures were released following Healey's assertion of an "optimistic story" for the UK economy. In June, the UK economy grew by 0.3 percent, partly attributed to a boost for hospitality and leisure firms from favorable weather and football viewership. Economists had anticipated a more subdued performance in July due to lagging sectors offsetting gains in hospitality.