The UK economy expanded 0.4% month-on-month in July 2026, picking up from 0.3% growth in June and defying expectations of stagnation. This marked the strongest expansion since February, as all three main sectors contributed, with services output rising 0.4%, production 0.2% and construction 0.1%. Within services, the largest positive contribution came from administrative and support service activities, which rose 3.7%, driven by rental and leasing (7.9%), services to buildings and landscape (4%) and employment activities (2.5%). Information and communication output also increased 2.4%. These were partly offset by a 1% decline in wholesale and retail trade; repair of motor vehicles and motorcycles. Meanwhile, production growth was supported by a 0.9% rise in manufacturing, while construction growth came solely from a 0.8% increase in repair and maintenance as new work fell 0.4%. On an annual basis, GDP expanded 1.6%, the strongest since February 2025.