The economy expanded by 0.4%, official figures show, whereas analysts had predicted no growth.
The economy expanded by 0.4%, the Office for National Statistics (ONS) said, whereas analysts had predicted no growth.
Growth in July was helped by a strong performance from the services sector, and particularly computer programming.
Experts said the figure showed the UK economy was proving resilient in the face of shocks such as the war in Iran, but they expect growth to slow in the months ahead as high energy prices affect households.
July's figure follows growth of 0.3% in June and zero growth in May.
According to the ONS director of economic statistics, Liz McKeown, there was evidence that businesses involved with AI and related technologies helped to boost the sector, not just in July but in May and June as well.
The ONS said many of the IT businesses reporting the largest turnover "appear to be involved with AI", though it said it is difficult to quantify the exact impact of AI.
McKeown also said some businesses had said that the warm weather and football world cup had affected activity in July, although she said the effects "differed across industries, benefitting some businesses while creating challenges for others".
The ONS said that in the three months to July, which gives a better underlying picture, the economy grew by 0.4% compared with the previous three months.
Chancellor John Healey said the economy, was "demonstrating a welcome resilience, despite serious global uncertainty".
"Our growth although still fragile was the fastest in the G7 in the first half of the year," he added.
"But, the conflict in the Middle East does have impacts here at home - from the cost of the weekly family shop to the cost of government borrowing."
Healey is to present his first Budget in October. He told BBC News this week that he wants people to confident about the economy , despite acknowledging the challenge of "historic high" borrowing costs.
Shadow chancellor Andrew Griffith said nobody in the government "should be high-fiving themselves" over the latest figures.
"Our construction and production sectors are shrinking, unemployment is up under Labour, and we've got the highest government borrowing rates in almost 30 years."
Paul Dales, the chief UK economist at Capital Economics, said July's data showed "the resilience of the economy in the first half of the year continued into the second half".
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via BBC Business.
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