UK Economy Grows 0.7% in Third Quarter, Fastest in Two and a Half Years

The UK economy grew by 0.7% in the three months from July to September 2026, the fastest expansion in two and a half years, according to figures released on 12 November by the Office for National Statistics (ONS), the government body that compiles the country's official economic data. The rise matched the 0.7% growth recorded in the first quarter of 2024.

Services, which include areas such as retail, hospitality and finance, grew by 0.9% and drove almost all of the quarter's growth. Production grew by 0.1%, while construction output fell by 0.7%. Compared with the same quarter a year earlier, gross domestic product (GDP), the total value of goods and services produced, was 1.9% higher.

The pace in the most recent month was stronger still. The Guardian reported that the economy grew by 0.2% in September, beating forecasts of zero growth. The ONS also revised its figure for August down, from 0.1% to zero. Growth in the previous quarter, April to June, had been 0.5%, according to the ONS.

Energy costs formed part of the backdrop. Oil prices rose above $100 a barrel in September and stayed above that level until early November, the Guardian reported. The ONS said wholesale electricity prices, meaning what suppliers pay for power before it reaches consumers, were about double their level a year earlier.

Economic forecasts and interest rates also moved in the period. At the time of the November budget, the Office for Budget Responsibility, which produces the government's economic forecasts, expected the economy to expand by 1.2% in 2026. In the week before 12 November, Bank of England policymakers voted to raise the Bank's interest rate, the cost of borrowing money, by a quarter percentage point to 4%.

The ONS's next quarterly GDP release is scheduled for 22 December 2026.