Photo: Your Local GuardianPhoto: Your Local GuardianUnited Kingdom
UK economy grows 0.7% in third quarter, fastest pace in over two years
Stronger-than-expected growth driven by services could shape how the Bank of England and businesses read the outlook despite energy price pressures.
What happened
The UK economy grew by 0.7% in the three months to September, up from 0.5% growth in the previous quarter. The Vaultz News+2 The Office for National Statistics published the figures on 12 November, and the growth matched what City analysts had expected. Pollar Strong growth in the services sector, the largest part of the economy, helped boost the numbers. BBC Computer programming registered its fastest growth in three years, helped by cloud computing and AI-linked spending. BBC Output grew 0.2% in September, against an expected 0%, while August growth was revised down to zero from 0.1%. Pollar
Around it
Grant Fitzner, chief economist at the Office for National Statistics, said growth could have been even stronger if there had not been a war in the Middle East. BBC Oil rose above $100 a barrel in September and stayed there until early November, while gas prices were about three times their February level before the US and Israeli attack on Iran. Pollar The Bank of England raised its rate by a quarter point to 4% in early November and now forecasts 1.6% growth in 2026 and inflation reaching 5% next year. Pollar Coverage by other outlets noted that a slowdown could follow as inflation and interest rates rise. Daily Digest
Sources
- The Vaultz NewsUK Economy Grows 0.7% in Strongest Quarter Since 2024 (opens in a new tab)
- BBCUK economy grows at fastest rate for more than two years (opens in a new tab)
- PollarUK economy grows 0.7% in Q3 despite energy shock (opens in a new tab)
- Daily DigestUK economy posts 0.7% third-quarter growth, its strongest in over two years (opens in a new tab)
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