UK Economy Grows 0.7 Percent in Third Quarter, Fastest Since 2024

UK real GDP grew by 0.7 percent in the three months to September 2026 compared with the three months to June 2026. The Office for National Statistics published the figures on Thursday, November 12, 2026. It was the fastest quarterly rate since the first quarter of 2024 and the ninth straight three-month period of growth.

The 0.7 percent figure matched the consensus forecast of 0.7 percent and the Bank of England forecast published in its November report. Monthly GDP grew by 0.2 percent in September 2026, beating expectations of no growth, after no growth in August 2026 and growth of 0.4 percent in July 2026. The ONS figures are an early estimate and are subject to revision.

ONS Chief Economist Grant Fitzner said in the BBC News report of the release: "The economy grew robustly in the third quarter almost entirely due to strong and widespread growth in the services sector. Within services, computer programming again increased strongly, as it has all year, registering its fastest growth in the last three years."

Services drive the quarter

Services output grew by 0.9 percent in the three months to September 2026 and was the largest contributor to growth. In September 2026 all three sectors grew. Services grew by 0.2 percent, production by 0.3 percent and construction by 0.8 percent in that month.

Over the full three months, production output grew by 0.1 percent, following a fall of 0.5 percent in the three months to August 2026. Construction output fell by 0.7 percent over the three months to September, even though construction grew in September itself.

Computer programming, consultancy and related activities grew by 4.4 percent in the three months to September 2026, its fastest growth in three years. The ONS said that industry gave the largest contribution to three-monthly GDP growth in each of the last seven months. It contributed 0.15 percentage points to GDP growth in the three months to September. Reporting on the release linked the strength to AI adoption and AI investment.

The wider picture

GDP grew by 1.9 percent in the three months to September 2026 compared with the same period a year earlier, up from 1.4 percent in the previous quarter. Real GDP per head rose by 0.7 percent in the quarter and was 1.7 percent higher than a year earlier.

The Wall Street Journal reported that growth came despite higher energy prices and rising borrowing costs stemming from the war between the US and Iran. The Journal reported that household consumption picked up, with retail sales volumes rising 0.7 percent. It also reported that the Bank of England last week raised interest rates for the first time since the outbreak of war and expects growth to slow to around 0.3 percent in the fourth quarter.

The prior three-month figures were revised in this release. Growth in the three months to August 2026 was revised down from 0.7 percent to 0.6 percent. Monthly growth in August 2026 was revised down from 0.1 percent to no growth. The July 2026 monthly figure stayed at 0.4 percent.

This is not financial advice. Do your own due diligence.