UK economy grows 0.7% in the third quarter, led by business services

Britain's economy expanded by an estimated 0.7 percent in July-September 2026, up from 0.5 percent in the preceding quarter. The first official estimate puts annual growth at 1.9 percent. Services supplied most of the increase, but the figures show a much less even performance across factories, construction and consumer-facing businesses.

The Office for National Statistics released the estimate on 12 November. Real output per person also rose 0.7 percent over the quarter and 1.7 percent over the year. That measure takes population into account, but it is not a reading of the pay or disposable income of every household.

Digital activity helps, but its exact contribution is uncertain

Services grew 0.9 percent. Business-facing services increased 1.0 percent, against 0.5 percent for consumer-facing services. Information and communication grew 2.1 percent, with computer programming, consultancy and related activities up 4.4 percent. The statistics office found evidence that many businesses reporting the largest turnover gains worked in artificial intelligence and cloud computing. It also cautioned that its collection methods make the precise contribution of those activities difficult to quantify.

Production increased only 0.1 percent, although manufacturing rose 0.9 percent. Construction fell 0.7 percent, with new private housing work down 4.7 percent. Food and beverage services declined 1.9 percent. Stronger aggregate output therefore does not mean every industry has recovered or every business is seeing stronger demand.

On the spending side, household consumption grew 0.6 percent, government consumption 0.6 percent and business investment 0.4 percent. September alone recorded growth of 0.2 percent, while August was revised down to no growth. These are early estimates and can change as fuller information arrives. They establish a stronger third-quarter result, not a guarantee that the pace will continue through winter.