Britain’s economy grew 0.4% month-on-month in July, beating forecasts for no growth and extending a run of stronger-than-expected readings, while services led the expansion. Gross domestic product rose 1% in the first half of 2026, the fastest pace in the Group of Seven, although economists warned seasonal adjustments could have overstated the performance and that revisions remain possible. The 10-year gilt yield eased toward 5.35% on Friday but stayed near a 19-year high and was on course for a weekly increase of more than 20 basis points as the energy rally paused. Brent crude remained near a four-month high after reaching $110 a barrel, while UK natural gas prices stayed near a 3.5-year high, renewing inflation and household-income concerns. Markets moved to fully price four Bank of England rate increases by the end of 2027, although Governor Andrew Bailey said decisions would depend on economic and geopolitical developments and that market pricing included a risk premium for further energy-price rises.