Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout

The UK economy grew in July as the rapid expansion of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey.

Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June. City economists had forecast zero growth.

Big companies describe being under constant threat but only half have a plan in place to respond to an attack

Nearly a third of British manufacturers have been hit by a cyber-attack on them or a company in their supply chain, according to a survey that highlighted the growing hacking risk to companies.

The findings come almost a year after Britain’s largest automotive employer, JLR, was hit by an attack that forced it to halt production for weeks.