UK economy grows at fastest quarterly rate in more than two years

The UK economy has grown at its fastest quarterly rate since the start of 2024 following a boost from tech services and AI.

The Office for National Statistics (ONS) said gross domestic product (GDP) increased by 0.7% in the third quarter, between July and September, up from 0.5% growth 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 figures were “welcome news”, adding: “Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future.”