PwC comments on the latest ONS GDP figures - July 2026

Commenting on the latest Office of National Statistics GDP data, Barret Kupelian, Chief Economist at PwC, says:

"The UK economy appears to be becoming more resilient to external shocks. Output expanded by 0.7% in the three months to May, with services, production and construction all growing. Together with last week’s upgrade to the UK outlook by the IMF, today’s figures suggest that the economy has entered this latest period of uncertainty with more momentum than many expected.

“The composition of growth is notable. Information technology and professional, scientific and technical activities continued to make some of the largest contributions, alongside healthcare. These are precisely the sectors where the effects of artificial intelligence are likely to show up first, suggesting that AI is beginning to move from investment and experimentation into measurable economic activity.

“Two risks now stand out. On the external front, a prolonged escalation of the conflict in the Middle East could raise energy costs, disrupt trade and add to inflationary pressures. The evidence so far suggests that the UK economy has weathered the disruption relatively well, but resilience should not be confused with immunity.

“The second risk is domestic. A prolonged period of speculation about the contents of the incoming government’s Autumn Budget could cause businesses to delay investment, hiring and other major decisions. Businesses can plan around difficult policy, but they find it much harder to plan around uncertainty. Providing domestic clarity against a backdrop of international uncertainty should therefore be an early priority for the new government."