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UK GDP rises 0.7% in third quarter of 2026

UK real GDP grew by 0.7% in July to September 2026, driven mainly by a 0.9% rise in services output, according to the Office for National Statistics.

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Checked against 1 sourceons.gov.uk
Illustration for: UK GDP rises 0.7% in third quarter of 2026

In brief

  • UK real GDP grew by 0.7% in Quarter 3 2026, following 0.5% growth in Quarter 2 2026.
  • Services output rose 0.9%, led by business-facing services, while construction fell 0.7%.
  • The ONS says AI and cloud computing businesses contributed to growth but the exact impact cannot be quantified.
  • GDP is 1.9% higher than in the same quarter a year ago.

UK GDP rises 0.7% in third quarter of 2026

UK real gross domestic product (GDP) is estimated to have increased by 0.7% in Quarter 3 (July to Sept) 2026, following growth of 0.5% in Quarter 2 (Apr to June) 2026, according to the Office for National Statistics. GDP is estimated to be 1.9% higher compared with the same quarter a year ago.

Growth by sector

In output terms, growth in the latest quarter was mainly caused by a 0.9% increase in the services sector, in particular business-facing services. The production sector increased by 0.1%, while the construction sector fell by 0.7%.

Services output increased by 0.9% in Quarter 3 2026, following an increase of 0.6% in Quarter 2 2026. Non-consumer-facing services (business-facing services) grew by 1.0%, while consumer-facing services grew by 0.5%.

The largest positive contributors to services growth were administrative and support service activities, information and communication, and professional, scientific and technical activities. Administrative and support service activities increased by 4.1%, driven by rental and leasing activities (up by 6.6%). Information and communication increased by 2.1%, mainly driven by increases in computer programming, consultancy and related activities (up by 4.4%).

The Office for National Statistics said this industry has been the largest driver of GDP growth across 2026, with evidence that many of the businesses reporting the largest increases in turnover are involved in activities related to artificial intelligence and cloud computing. However, because of the nature of its data collection, it is difficult for the Office for National Statistics to quantify the exact impact of these types of activities on turnover.

Other indicators

Real GDP per head is estimated to have increased by 0.7% in Quarter 3 2026 and is up by 1.7% compared with the same quarter a year ago. Nominal GDP is estimated to have increased by 1.4% in Quarter 3 2026 and is now 4.3% higher compared with the same quarter a year ago.

Monthly GDP figures published on 12 November 2026 show that GDP grew by 0.2% in September 2026, after showing no growth in August 2026 (revised down from a 0.1% growth in the previous publication) and an unrevised growth of 0.4% in July 2026.

Why it matters

The quarterly growth figure is an early estimate and is subject to revision. The Office for National Statistics notes that since Quarter 1 2000, there is a mean revision of positive 0.08 percentage points between the first estimate and the final one published three years later, with a mean absolute revision of 0.27 percentage points.


Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

Questions readers ask

How much did UK GDP grow in the third quarter of 2026?
UK real gross domestic product (GDP) is estimated to have increased by 0.7% in Quarter 3 (July to Sept) 2026.
Which sector drove the majority of the economic growth in the third quarter?
Growth was mainly caused by a 0.9% increase in the services sector, particularly business-facing services which grew by 1.0%.
What industries contributed most to the growth in services output?
The largest positive contributors were administrative and support service activities, information and communication, and professional, scientific and technical activities.
Why is the Office for National Statistics unable to quantify the impact of AI and cloud computing on turnover?
The Office for National Statistics stated that because of the nature of its data collection, it is difficult to quantify the exact impact of these types of activities on turnover.
When were the monthly GDP figures for September 2026 published?
Monthly GDP figures showing 0.2% growth in September 2026 were published on 12 November 2026.

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