European Investor
11 Sep 2026, 09:06
UK Economy Grows 0.4% in July as Industrial Production and Trade Improve
The UK economy expanded more strongly than expected in July, with GDP rising 0.4% month-over-month. The increase exceeded expectations for no growth and followed a 0.3% expansion in June.
Industrial activity also surprised to the upside. Industrial production increased 0.2% in July, compared with expectations for a 0.2% decline and reversing the previous month’s 0.2% contraction.
Meanwhile, the UK trade deficit narrowed to £20.97 billion from £23.01 billion, coming in better than the £22.60 billion deficit expected.
The combination of stronger GDP growth, improving industrial output and a narrower trade deficit points to resilient economic momentum at the start of the third quarter. The stronger data could also complicate expectations for further Bank of England monetary easing if inflation pressures remain elevated.
The UK economy expanded more strongly than expected in July, with GDP rising 0.4% month-over-month. The increase exceeded expectations for no growth and followed a 0.3% expansion in June.
Industrial activity also surprised to the upside. Industrial production increased 0.2% in July, compared with expectations for a 0.2% decline and reversing the previous month’s 0.2% contraction.
Meanwhile, the UK trade deficit narrowed to £20.97 billion from £23.01 billion, coming in better than the £22.60 billion deficit expected.
The combination of stronger GDP growth, improving industrial output and a narrower trade deficit points to resilient economic momentum at the start of the third quarter. The stronger data could also complicate expectations for further Bank of England monetary easing if inflation pressures remain elevated.
