UK GDP Grows by 0.4% in July Thanks to AI

UK GDP increased by 0.4% in July after a 0.3% rise in June. The main factor behind this acceleration was a global investment surge in artificial intelligence and related technologies. The figure exceeded analysts' forecasts, which had anticipated zero growth. The services sector grew by 0.4%, while the output in information technology and consulting rose by 4.4% due to high demand for AI solutions. Manufacturing increased by 0.9%, and construction by 0.1%. The positive data gives the economy a chance to surpass the Bank of England's forecast of 0.1% growth in the third quarter. However, optimism is tempered by new threats: rising fuel costs due to escalating tensions in the Middle East, increasing rates with expectations of four hikes in the coming year, and budget pressures from high energy prices and borrowing costs.

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