UK Growth Surprises, But Bond Rout Forces Chancellor's Hand on Emergency Budget

The UK economy grew by 0.4% in July, confounding economists who had forecast zero growth. This surprise expansion, up from June's 0.3%, was driven by a resilient services sector where AI and cloud computing businesses were major contributors. The data delivered a welcome boost for Chancellor John Healey as he prepares for his first Budget on 28 October.

The Market Reaction

The FTSE 100 rallied on the news, shaking off initial jitters about an oil-driven slump....