The United Kingdom’s economy grew by 0.7% between July and September 2026, recording its strongest quarterly expansion in more than two years, according to figures released by the Office for National Statistics (ONS).
The latest figures, published on Thursday, 12 November, showed an improvement from the 0.5% growth recorded in the second quarter of the year.
The expansion was driven largely by the services sector, particularly computer programming and consultancy activities, which benefited from increased investment in artificial intelligence (AI) and cloud computing.
According to the ONS, the services sector grew by 0.9% during the three months, making it the largest contributor to the country’s economic growth.
Computer programming and consultancy recorded a 4.4% increase, marking its strongest performance in three years. The ONS also identified businesses involved in AI and cloud computing among those reporting some of the largest increases in turnover.
Grant Fitzner, the ONS chief economist, said the economy had recorded widespread growth across the services sector.
He noted that computer programming had continued to perform strongly throughout the year, with AI-related businesses contributing to the sector’s expansion.
Production also recorded modest growth of 0.1%, supported by improvements in manufacturing, particularly the production of computers and electronic equipment.
However, the construction industry continued to experience difficulties, with output falling by 0.7% during the quarter.
The latest figures also showed that the economy expanded by 0.2% in September, following no growth in August. On an annual basis, GDP increased by 1.9% in the three months to September compared with the same period in 2025.
Reacting to the figures, Prime Minister Andy Burnham described the growth as welcome news, saying the government remained focused on reducing household expenses, creating employment opportunities and supporting businesses.
Chancellor John Healey also welcomed the development, describing the British economy as resilient despite the impact of the conflict in the Middle East and rising energy costs.
Meanwhile, Sanjay Raja, chief UK economist at Deutsche Bank, said consumer spending had remained relatively strong despite economic pressures, while businesses had maintained confidence amid geopolitical uncertainty.
Despite the improved performance, economists have warned that rising energy prices, borrowing costs and pressure on household finances could affect economic growth in the coming months.
The latest figures therefore present a mixed picture for Britain: stronger economic activity, supported by technology and business investment, alongside continuing challenges in construction and the wider cost of living.
