Britain’s economy grew 0.7% in the third quarter of 2026, faster than its 0.5% growth in the second quarter of the year, official figures showed on Thursday. Economists polled by Reuters had forecast 0.7% quarter-on-quarter growth for the period.
The Office for National Statistics said UK real gross domestic product increased by 0.7% in the three months to September, following growth of 0.5% in the second quarter and 0.6% in the first quarter. GDP is estimated to be 1.9% higher compared with the same quarter a year ago, and real GDP per head increased by 0.7% in the quarter and is up by 1.7% compared with the same quarter a year ago. Nominal GDP increased by 1.4% in the quarter and is now 4.3% higher than a year earlier.
The ONS monthly figures published on Thursday show that GDP grew by 0.2% in September 2026, after showing no growth in August, revised down from a 0.1% rise in the previous publication, and an unrevised increase of 0.4% in July. Early estimates of GDP are subject to revision, the ONS cautioned.
“The economy grew robustly in the third quarter almost entirely due to strong and widespread growth in the services sector,” Grant Fitzner, the ONS chief economist, said. Services output rose 0.9% over the quarter, while production increased by 0.1%.
While some economists expect slower growth in the final quarter of the year as higher energy prices and borrowing costs weigh on activity, the Bank of England last week upgraded its growth projection for 2026 alongside increasing interest rates. The central bank now expects GDP to expand 1.6% this year, much stronger than the 1.2% forecast by the government’s Office for Budget Responsibility after finance minister John Healey’s October 28 budget, which did not factor in some recent stronger GDP data and upward revisions to past numbers. The central bank attributed some of the strength to spending on artificial intelligence and a small, temporary boost from Healey’s fiscal plan.
