Britain’s economy grew by 0.7% in the third quarter of 2026, official figures showed on Thursday, quickening from 0.5% in the previous quarter and matching economists’ forecasts.
The Office for National Statistics (ONS) said gross domestic product was 1.9% higher than a year earlier, while GDP per head also rose 0.7% in the quarter and was up 1.7% on the year. Monthly figures showed the economy grew 0.2% in September, after flat output in August — revised down from an initial estimate of 0.1% growth — and a 0.4% rise in July.
Growth was driven overwhelmingly by services, which expanded 0.9% in the quarter. Business-facing services led the way, with administrative and support activities up 4.1% and information and communication up 2.1%, including a 4.4% rise in computer programming and consultancy. The ONS said many of the businesses reporting the largest increases in turnover were involved in artificial intelligence and cloud computing, and the sector has been the largest driver of GDP growth across 2026.
Production rose just 0.1%, with manufacturing up 0.9% offset by falls in mining, energy and water supply. Construction fell 0.7%, dragged down by a 4.7% drop in private housebuilding, although repair and maintenance work grew.
On the spending side, household consumption rose 0.6% and business investment increased 0.4%, while overall fixed investment was up 1.7% on the quarter.
The figures land a week after the Bank of England upgraded its growth projection for 2026 to 1.6%, alongside raising interest rates, with Bank Rate held at 4.00% at its 5 November meeting and consumer price inflation running at 3.5%. The Bank attributed some of the economy’s strength to spending on artificial intelligence and a small, temporary boost from Chancellor John Healey’s 28 October budget. The government’s Office for Budget Responsibility had forecast growth of just 1.2% for the year.
Economists cautioned that the pace is unlikely to last. Higher energy prices and borrowing costs are expected to weigh on activity in the final quarter of the year, and the ONS notes that early GDP estimates are subject to revision.
Sources: Office for National Statistics, “GDP first quarterly estimate, UK: July to September 2026” (https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/latest); Reuters, “UK economy grows 0.7% in Q3, ONS data shows” (https://www.reuters.com/world/uk/uk-economy-grows-07-q3-ons-data-shows-2026-11-12/).
