United Kingdom: Growth outlook strengthens with AI-driven services – Deutsche Bank
Deutsche Bank’s Chief UK Economist Sanjay Raja highlights stronger-than-expected UK GDP data, with July output rising 0.4% month-on-month and broad-based gains across services, production and construction.
Deutsche Bank's Chief UK Economist Sanjay Raja reveals robust UK GDP growth, with July's output expanding by 0.4% month-on-month. This robust performance was seen across various sectors, with particular strength in information and services driven by AI-related capital expenditures. The UK economy appeared to surpass expectations, with the services sector up 0.4% month-on-month, production sector up 0.2% month-on-month (with manufacturing rising by 0.9% month-on-month) and construction output up 0.1% month-on-month.
The information and services sector saw significant growth, with telecoms up 1.1% month-on-month, computer programming/consultancy services up 3.5% month-on-month, and information services activities up 1.1% month-on-month. Analysts now project annual growth of 2.4%, up from earlier forecasts. Households and businesses continue to spend, despite the impact of energy costs on disposable incomes.
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