Business · Economy · 40 mins ago
UK economy grows 0.7% in third quarter, fastest rate in over two years
The UK economy grew 0.7% from July to September, its fastest rate in more than two years, according to official figures.
Growth was 0.5% in the previous quarter.
Business investment in AI, data centres and defence helped lift activity, alongside spending on technology, infrastructure and aircraft.
Consumers also continued spending, while hospitality and healthcare activity were among areas expected to have grown over the summer.
This growth helped offset pressure from higher energy prices linked to the Iran war, as well as higher borrowing costs for some businesses.
Economists expect growth to slow in the final quarter of 2026 as inflation and interest rates weigh on the economy.
The UK economy grew by 0.7% in the three months to September, according to official figures.
The growth was the fastest rate in more than two years.
The figure followed growth of 0.5% in the second quarter.
Business investment in areas including technology, infrastructure and defence was identified as a source of growth.
Higher energy prices were weighing on households and businesses.
- Who
- The UK economy.
- What
- It grew by 0.7% in the three months to September, according to official figures.
- When
- The growth was recorded in the third quarter, from July to September. The figures were reported on 12 November 2026.
- Where
- The United Kingdom.
- Why
- Business investment, including in technology, infrastructure and defence, was identified as a source of growth.
This story does not have two clearly opposing sides.
The UK economy grew by 0.5%.
AI spending contributed to higher GDP, according to the Evening Standard.
The UK economy grew by 0.7% in the third quarter.
Official figures reporting the third-quarter growth were published.
- Third-quarter growth
- 0.7%
- Comparison
- 0.5% growth in the second quarter
- Period covered
- July to September
- Reported
- 12 November 2026
- Fastest growth
- More than two years
3 sources
What people are saying
Consumers have also been out in force, despite the energy shock.
And businesses have remained fairly confident regardless of still-elevated geopolitical uncertainty.
Looking ahead, we expect the UK economic growth story to have cooled a bit.