0926 GMT - AI-related activity has contributed to the continued resilience of the British economy, Capital Economics' Paul Dales says in a note. GDP growth was 0.4% on month in July, with businesses reporting stronger activity related to AI and cloud computing. That contributed to a 2.4% rise in IT and communications output within the services sector and a 5.2% gain in the manufacture of computer, electronic and optical products within the industrial sector. "AI could prove to be a longer-lasted support to real activity," Dales says. Even if GDP were flat in both August and September, GDP growth would still rise 0.6% in the third quarter, though higher energy prices and borrowing costs will soon take a bigger toll on activity, he says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.