UK economy grew faster than expected in July

The UK's economy grew faster than expected in July, latest official figures have shown.

The economy expanded by 0.4% in the month, the Office for National Statistics (ONS) said, whereas economists had predicted no growth.

The expansion was helped by a strong performance from the services sector, and particularly computer programming.

According to the ONS director of economic statistics, Liz McKeown, there was evidence that businesses involved with artificial intelligence and related technologies helped to boost the sector, not just in July but in May and June as well.

She also said some businesses had said that the warm weather and football world cup had affected activity in July, although she said the effects "differed across industries, benefitting some businesses while creating challenges for others".

The ONS said that in the three months to July, the economy grew by 0.4% compared with the previous three months.

Despite the stronger-then-expected figure for July, Richard Carter, the head of fixed interest research at investment firm Quilter Cheviot, said: "Growth is going to be hard to come by so this may not last, especially as activity is likely to stall ahead of the Budget.

"The war in the Middle East continues to drive a lot of the economic data, but the UK is the most exposed to the fallout," he said.