UK economy grows by 0.7% – fastest pace in two years

The UK economy grew by 0.7 per cent between July and September, the Office for National Statistics said.

That follows growth of 0.5 per cent in the second quarter.

This was the strongest growth for a calendar quarter since the first three months of 2024.

The ONS said it was “almost entirely” fuelled by strength in the UK’s services sector, particularly computer programming, which grew at the fastest rate in three years.

It also pointed to evidence that businesses linked to AI adoption were boosting the sector.

Prime Minister Andy Burnham said the data was “welcome news”.

He said: “Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future.

“Our job now is to keep focused on what matters to people: bringing down bills, creating good jobs, helping high streets thrive and backing businesses to grow.

“There is more to do, but we have a clear direction.

“Giving people breathing space now while making the long-term changes needed to deliver good growth in every part of Britain.”

Chancellor John Healey said: “The Middle East conflict has hit growth worldwide, yet Britain is showing standout resilience.

“Our UK economy is growing at the fastest rate in almost 10 years, outside the pandemic.

“We are backing UK investment, innovation and fast growth firms. I want to bring back confidence in Britain.”

More follows on this breaking news story. Subscribe here to get the latest updates from The Independent.