Financial Markets

UK GDP Grows 0.4% in July as AI-Linked Services Lift the Economy

UK GDP grew 0.4% in July 2026 after 0.3% growth in June, with computer programming contributing 0.12 percentage points to output.

UK GDP Grows 0.4% in July as AI-Linked Services Lift the Economy

UK monthly gross domestic product grew by 0.4% in July 2026, extending the 0.3% expansion recorded in June after no growth in May. The reading stands out for the strength of computer programming and related services, while the Office for National Statistics said high-turnover businesses showed activity linked to artificial intelligence and cloud computing.

The ONS’s assessment adds context to the July services performance, but it does not provide a measured causal explanation for the monthly result: the agency did not quantify how much AI- or cloud-related activity added to business turnover or GDP.

Data Snapshot

MetricCurrentPreviousChangePeriodAs ofSource
Real gross domestic product (GDP)0.4%0.4% in the three months to June 2026; 0.6% in the three months to May 2026grew by 0.4% in the three months to July 2026, compared with the three months to April 2026three months to July 20262026-09-11Office for National Statistics
Monthly GDP0.4%0.3% in June 2026; no growth in May 2026grew by 0.4% in July 2026July 20262026-09-11Office for National Statistics
Services output0.6%0.5% in the three months to June 2026; 0.6% in the three months to May 2026grew by 0.6% in the three months to July 2026, compared with the three months to April 2026three months to July 20262026-09-11Office for National Statistics
Computer programming, consultancy and related activities3.5%grew by 3.5% in July 2026July 20262026-09-11Office for National Statistics
Information and communication2.4%grew by 2.4% in July 2026July 20262026-09-11Office for National Statistics

July GDP growth followed 0.3% in June

Monthly GDP growth of 0.4% in July 2026 followed 0.3% growth in June 2026 and no growth in May 2026, according to the ONS release published on 11 September.

The monthly measure should not be read as directly equivalent to the rolling three-month series. Real GDP grew by 0.4% in the three months to July 2026 compared with the three months to April 2026; the corresponding growth rates were 0.4% in the three months to June 2026 and 0.6% in the three months to May 2026.

Computer programming added 0.12 percentage points to July GDP

Computer programming, consultancy and related activities grew by 3.5% in July 2026. The category contributed 0.14 percentage points to services output and 0.12 percentage points to real GDP during the month.

Information and communication grew by 2.4% in July 2026 and was the second-largest positive contributor to services sector output. Those figures identify a concrete source of momentum within the services economy, rather than attributing the full GDP result to a single technology-related activity.

AI and cloud activity in the services data

The ONS said there was evidence that many of the businesses with the largest turnover in July 2026 were involved in artificial-intelligence and cloud-computing-related activities, although it could not quantify their exact impact on turnover.

Services output grew by 0.6% in the three months to July 2026 and was the main contributor to GDP growth over that period. The rate was 0.5% in the three months to June 2026 and 0.6% in the three months to May 2026.

July’s figures are an early estimate, with the full time series open to revision in the next release on 15 October 2026.

Investment Disclaimer

Share this story

X LinkedIn

Related Stories