The United Kingdom economy grew by 0.7 percent in the third quarter of 2026, according to the first quarterly gross domestic product bulletin published by the Office for National Statistics on November 12, 2026. The expansion accelerated from the 0.5 percent sequential increase recorded during the second quarter, bringing aggregate national output 1.9 percent higher than the corresponding period last year. Monthly telemetry released by the statistics agency showed national output expanded by 0.2 percent in September, following unrevised 0.4 percent growth in July and zero growth in August.
The dominant services sector, representing roughly 80 percent of aggregate economic activity, expanded by 0.8 percent across the three-month period. British manufacturing output advanced by 0.6 percent sequentially during the third quarter, with assembly lines producing advanced aerospace components, pharmaceutical active compounds, and zero-emission commercial transport vehicles registering higher utilization rates. Quarterly economic surveys published by the Confederation of British Industry showed business confidence indices advancing to a two-year peak, with enterprise executives reporting expanded investment appetites directed toward automated production hardware and industrial decarbonization systems.
Chancellor of the Exchequer Rachel Reeves released a formal statement welcoming the growth figures; the Treasury reiterated plans to sustain long-term business asset allowances and regional infrastructure delivery programs. Following the GDP disclosure, sterling appreciated against both the U.S. dollar and the euro across European foreign exchange sessions, while gilt yields shifted modestly as institutional bond traders dialed back expectations for rapid interest rate reductions by the Bank of England Monetary Policy Committee; short-term interest rate swaps indicated market expectations for a measured quarterly easing trajectory.
The Office for National Statistics noted that preliminary figures remain subject to routine historical revisions as comprehensive value-added tax returns and annual supply-use balances are integrated over coming months.
