Britain's economy expanded robustly once again in July, defying expectations despite a substantial rise in household energy bills, with activity proving resilient across all major sectors.

The Office for National Statistics reported on Friday that gross domestic product (GDP) grew by 0.4% in July, following a 0.3% increase in June. This outcome comfortably surpassed analyst projections, which had anticipated zero growth for the month.

The latest data marks the third consecutive month that economic expansion has outperformed economist forecasts, suggesting the UK may be poised to buck market predictions of a pronounced slowdown in the second half of 2026. Sterling showed minimal movement following the release of the figures.

Services activity led the way with a 0.4% rise in July, while industrial production increased by 0.2% and construction output edged up by 0.1%.

Earlier this week, Chancellor John Healy committed to slashing red tape and reducing operational costs for businesses in an effort to bolster what he described as a "fragile" growth rate. The Burnham administration is counting on sustained economic momentum to generate the tax revenues necessary to finance an ambitious spending agenda covering defence, public housing, and social welfare programmes.