GDP monthly estimate, UK: July
2026
Chancellor of the Exchequer, MP said:
Britain's economy is demonstrating a welcome resilience, despite
serious global uncertainty. Our growth although still fragile was
the fastest in the G7 in the first half of the year. But,
the conflict in the Middle East does have impacts here at home -
from the cost of the weekly family shop to the cost of government
borrowing.
We are shifting power to local communities to generate growth in
more places and backing business to succeed with more investment,
innovation and jobs. This is the route to raising living
standards and delivering good growth in every postcode.
TUC
Make the most of fiscal
rules to release handbrake on investment and
growth, TUC says
Commenting on ONS figures
showing monthly GDP up 0.4%in July
2026, and three-monthly
growth also up 0.4%, TUC General
Secretary Paul
Nowak said:
It's welcome
that we've seen the
economy strengthen over the first half of the
year and into an impressive July the
government is starting to break the
cycle of stagnation that the country has been stuck in
for over a decade.
But international
headwinds are building
again. To deliver good growth in every
postcode and reindustrialise the country, the
government must go further and release the handbrake
on public investment.
"For far too long, the UK
has lagged behind on the investment
rates that we know are
vital to propel growth, deliver good
jobs and boost living standards.
"To ensure that change is
sustained, we need to make full use of the existing
fiscal rules to unleash investment in the economy,
along with a root and branch review of the
OBR.
We also need to get more
money directly into people's pockets the
government should use the Budget to tax banks
fairly and boost family budgets as a matter of
urgency."
British Chambers of
Commerce
Responding to the latest GDP data, published this morning by the
Office for National Statistics, Stuart Morrison, Research Manager
at the British Chambers of Commerce said:
Growth of 0.4% in the three months to
July shows a more resilient economy than expected in the summer
months.
The service sector continued to
perform the strongest, particularly boosted by growth in computer
programming, including AI and related technologies. However, the
data shows a concerning 0.5% fall in both construction and
production output.
While today's headline growth
data is welcome news, the warning lights of cost pressures
and global uncertainty are still flashing for many of the
businesses we represent.
Our Budget submission published earlier this week is clear about the immediate
steps we're recommending to help all businesses across the UK. We
need to see a cut in employer NICs for all under 25s, cost relief
on energy bills and business rates, and a fully resourced export
support system.
The Chancellor is facing some
difficult choices in the coming weeks as he prepares plans to
further kickstart the economy. Our message is simple,
we're calling on him to Back Business, Cut Costs and Deliver
Growth.
IoD
Commenting on ONS data that showed GDP
rose by 0.4% in July 2026, Anna Leach, Chief Economist at the
Institute of Directors, said:
July's GDP data continue this year's pattern of resilient growth,
with particularly strength in computer programming, where the ONS
points to activity related to AI and cloud computing. However,
while July's data are encouraging, the challenge now is whether
that resilience can withstand a much tougher autumn. As the Iran
conflict intensifies, oil is back above $100 a barrel, gas prices
are at their highest since late 2022, and financial conditions
have tightened markedly. These developments will raise inflation,
squeeze household incomes and business margins, and weigh on
spending and growth.
As businesses and households brace for a difficult winter, the
government risks adding to the very cost pressures it says it
wants to relieve. On Monday, the Chancellor said he wanted to
draw the line' under rising business costs. Yet just days later,
mayoralities have been granted new powers to levy tourist taxes.
The forthcoming Budget must bring much-needed coherence to
economic policy if government is serious about rebuilding
chronically low business confidence and getting firms investing.
