Economy expands by 0.4 per cent as firms demonstrate resilience - Chamber

UK’s economy expanded unexpectedly by 0.4 per cent over July, partly helped by investment in artificial intelligence (AI), according to latest figures from the Office for National Statistics (ONS).

The figures follow a growth of 0.3 per cent in June and zero growth in May.

The largest contribution to the quarterly growth came from the services sector, which grew by 0.6 per cent in the three months to July 2026.

Ruth Fleet (pictured), senior policy advisor at Greater Birmingham Chambers of Commerce, said: “We continue to see resilient growth in July’s GDP data, driven by strong services growth from business administration and computing services, with particular growth seen in AI and cloud computing growth.

“However, experts still fear that this is a temporary situation, with high oil prices and continuing global instability putting additional pressure on businesses.

“The success of some areas is also masking softer growth in consumer services such as retail and hospitality.

“Chambers across the UK are calling for the Government to acknowledge rising costs for business, with domestic policy costs adding 70 per cent to the cost of doing business in the last ten years.

“The GBCC supports the British Chambers of Commerce’s Budget asks: a cut in employer NICs for all under 25s, cost relief on energy bills and business rates, and a fully resourced export support system. 

“Backing British businesses is the only way to drive meaningful GDP growth in future.”