UK Economy Expands 0.7% in Third Quarter as September Output Beats Forecasts

The UK economy expanded 0.7% quarter-on-quarter in the third quarter of 2026, matching forecasts and accelerating from 0.5% in the prior quarter. Year-on-year, Q3 GDP rose 1.9%, up from 1.4%. Growth was supported by an unexpected 0.2% month-on-month expansion in September, beating forecasts of 0.0%, despite August GDP being revised down to flat. September gains were driven by services rising 0.2% and manufacturing surging 0.7%. Over the quarter, computer programming, consultancy, and AI-related services advanced 4.4%, offsetting a 0.7% contraction in construction output.