UK economy grows 0.4% in July, led by services

The UK economy grew by 0.4% in July 2026, according to the Office for National Statistics' monthly estimate published on 11 September. That followed growth of 0.3% in June and no growth in May.

What grew

All three main sectors expanded in July:

• Services: up 0.4%
• Production: up 0.2%
• Construction: up 0.1%

Over the three months to July, GDP rose 0.4% compared with the three months to April, the eighth consecutive period of three-month growth. Services did the heavy lifting, rising 0.6%, while production and construction each fell 0.5%. Within services, the ONS pointed to growth in professional, scientific and technical activities, information and communication, and administrative services. Manufacturing grew 0.5% over the three months, led by computer and electronic products.

Compared with a year earlier, GDP was 1.6% higher in July and 1.3% higher in the three months to July.

Why sterling traders care this week

Monthly GDP isn't usually the release that moves the pound most, but its timing gives it extra weight. Labour market figures follow on 15 September (preview) and the Bank of England announces its decision on 17 September. In July, three of the nine Monetary Policy Committee members voted to raise Bank Rate to 4%, so evidence that the economy is holding up matters for whether more of them join (Bank of England preview).

For GBP/USD and EUR/GBP, the bigger question is how the Bank of England's path compares with the Federal Reserve's and the European Central Bank's. Growth figures feed into that comparison rather than deciding it; how interest rate decisions move currencies explains the mechanics, and GDP explained covers how to read the release.

The next monthly GDP estimate, for August, is due on 15 October 2026.