The UK economy grew by 0.7% between July and September, its fastest quarterly expansion for more than two years, according to figures from the Office for National Statistics.
The rise was stronger than many forecasters had expected. Growth was driven almost entirely by the services sector, with computer programming and consultancy recording their strongest growth in three years.
Services lead the way, but construction falls
The ONS said businesses linked to artificial intelligence and cloud computing appeared to be among those reporting the biggest increases in turnover. Car leasing, intellectual property, property management, accountancy, employment agencies and car dealerships also contributed.
Household spending remained relatively resilient over the summer, although the ONS cautioned that higher inflation and easing private-sector wages could limit spending in the months ahead.
There was less positive news from construction, where activity fell by 0.7% over the quarter and was 1.7% lower than a year earlier. New private housing work dropped by 4.7%.
The figures are estimates and may be revised. They also do not mean every household will feel better off, with prices, wages and bills having a more direct effect on living standards than GDP alone.
Why it matters for Britain
The figures point to continued strength in Britain’s services and technology businesses, including firms working with AI and cloud computing. That can support investment and jobs, although weaker construction activity highlights the ongoing challenge of increasing new housing supply.
