Published 12 November 2026 – 11:18 GMT+1
The United Kingdom’s economy expanded by 0.7% over the July–September quarter, accelerating from a downwardly revised 0.5% in the previous three months, according to figures released Thursday by the Office for National Statistics (ONS).
Output was 1.9% higher than the same period a year earlier. On a monthly basis, gross domestic product rose 0.2% in September, following a stagnant August.
The services sector was the primary engine of growth, climbing 0.9%. Computer programming, consultancy and related activities surged 4.4%, driving a 2.1% gain across the broader information and communication sector.
The ONS noted that computer programming, consultancy and related activities had been “the largest driver of GDP growth across 2026, with evidence that many of the businesses reporting the largest increases in turnover are involved in activities related to artificial intelligence and cloud computing.” It added that the precise contribution of these activities remained difficult to quantify.
Sarah Coles, head of personal finance at AJ Bell, observed: “Given the global backdrop, the rising cost of living, and the fact we were heading for the uncertainty of the Budget, growth held up well in the third quarter. And AI continued to do a significant portion of the heavy lifting.”
Although investors have voiced concern that substantial spending on artificial intelligence may not translate into durable profits, Coles suggested that its steady adoption is already benefiting UK businesses in fields such as administrative and support services.
Production output rose a modest 0.1%, while construction contracted by 0.7%. Manufacturing grew 0.9% over the three months to September, propelled by a 4.6% increase in the output of computer, electronic and optical products.
Coles attributed the strength of these manufacturers to the same underlying trend. “It’s another area where growth is underpinned by demand for AI,” she said.
Ranked by nominal GDP, the UK is the world’s fifth-largest economy, trailing the United States, China, Germany and Japan.
“The Middle East conflict has hit growth worldwide, yet Britain is showing stand-out resilience,” UK Chancellor John Healey said in response to the latest data.
The Bank of England last week lifted its annual growth projections to 1.6% for 2026 and 1.3% for 2027, revised up from 1.1% for both years in July. It attributed the upgrade in part to AI-related spending bolstering business investment.
The central bank also increased its benchmark interest rate by a quarter of a percentage point to 4%, marking its first hike since August 2023. UK inflation climbed to 3.5% in September, driven partly by elevated household energy bills and motor fuel prices.
Kit Rees, an investment strategist at Quilter, described the growth as “robust, if unspectacular by historic standards.” He warned that higher employment costs, rising energy prices and strained household budgets were likely to weigh on the economy through 2027.