The UK economy grew by 0.7% between July and September 2026, according to new official figures, with strong growth in business services offsetting continued weakness in construction. The Office for National Statistics (ONS) published its first estimate on Thursday 12 November, showing an acceleration from the 0.5% growth recorded between April and June. GDP was 1.9% higher than in the same quarter of 2025, while GDP per head increased by 0.7% during the latest three-month period.
UK GDP Growth Accelerates
The economy expanded by 0.6% in the first quarter of 2026, 0.5% in the second and 0.7% in the third. The latest figure matches the 0.7% recorded in the first quarter of 2025. September GDP grew by 0.2%, following no growth in August and a 0.4% increase in July. August was revised down from an earlier estimate of 0.1% growth. These are preliminary estimates and may be revised.
Services Drive the Expansion
Services output rose by 0.9% in the third quarter, compared with 0.6% in the second. The largest positive contributors included administrative and support services, information and communication, and professional, scientific and technical activities. Information and communication output grew by 2.1%, including 4.4% growth in computer programming and consultancy. The ONS identified evidence of growth among AI and cloud-computing businesses but said their precise contribution could not be quantified. Accommodation and food services fell by 0.5%, including a 1.9% decline in food and beverage services.
Construction and Production Show Mixed Results
Construction output fell by 0.7% and was 1.7% lower than a year earlier. New work contracted by 1.6%, including a 4.7% decline in private housing new work. Repair and maintenance rose by 0.5%. The wider production sector grew by just 0.1%, although manufacturing increased by 0.9%. Computer, electronic and optical products manufacturing expanded by 4.6%. Mining and quarrying and energy supply both declined.
Household Spending and Investment
Real household consumption increased by 0.6% in the quarter, supported by spending on transport and housing. Government consumption rose by 0.6%. Gross fixed capital formation increased by 1.7%, while business investment grew by 0.4% and stood 3.0% above its level a year earlier. These figures suggest an improvement in investment, although business investment expanded more slowly than total fixed capital formation.
GDP Per Head Rises
Real GDP per head rose by 0.7% in the third quarter and by 1.7% compared with the same quarter of 2025. The measure adjusts economic output for population size but is not equivalent to household disposable income or a direct measure of living standards for every family.
Political and Economic Implications
The figures provide fresh evidence for debate over the Government’s economic record. Stronger output can support tax revenues over time, but the ONS release does not establish the fiscal effect or attribute the growth to any particular policy. The contrast between expanding services and contracting construction also underlines uneven performance across the economy.
What Happens Next?
The ONS is scheduled to publish revised quarterly national accounts on 22 December 2026. More complete data may change the initial growth estimate. For now, the official figures show faster economic expansion in the third quarter, driven chiefly by services, while construction remained weak.