UK economy grows 0.7% in third quarter of 2026, ONS says

The Office for National Statistics (ONS) estimates that UK real gross domestic product (GDP) rose by 0.7% in the third quarter of 2026, covering July to September. Growth in the second quarter was 0.5%. Compared with the same quarter a year earlier, the economy is 1.9% larger.

Nominal GDP, which is the value without an adjustment for inflation, rose by 1.4% in the quarter and by 4.3% over the year.

These third-quarter figures are first, preliminary estimates. The ONS often revises them in later releases, as seen in recent monthly reports where earlier results were revised upwards.

Services led the growth

According to the ONS, the services sector grew by 0.9%, particularly services provided to businesses. Production rose by 0.1%. Construction, however, fell by 0.7% and is 1.7% lower than a year earlier. Education, and accommodation and food services, also recorded falls of 0.5% each.

Polish Express reports that businesses linked to artificial intelligence had the biggest impact on the result. The Bank of England's November report also says that AI-related services have helped the economy this year, although its precise share is hard to pin down.

Forecasts before the release

In its July forecast, the Bank of England expected GDP to grow by 0.1% in the third quarter. Its November report now expects growth of 0.7%, a clearly better outcome than its earlier projection.

Worth knowing

Headline GDP growth describes the economy as a whole. It does not in itself change the rules on residence, work, tax or benefits, and the sources do not describe any direct effects on people living in the UK. Household budgets are shaped mainly by inflation and wages.