UK economy records fastest growth in over two years

The UK economy expanded by 0.7% between July and September, marking its quickest growth in more than two years, official data showed. The increase was recorded in the three months to September and suggests a more resilient economy than expected over the summer.

Strong performance in the services sector, which covers non‑physical goods such as consultancy, hotels and restaurants, drove the rise. Within services, computer programming posted its fastest growth in three years, helped by AI‑linked spending, and the boost from programming and consultancy has been the biggest driver of growth so far this year. Grant Fitzner, chief economist at the Office for National Statistics, said it was "possible growth could have been even stronger" if there hadn't been a war in the Middle East, but warned households may not feel better off as inflation and wages have a more direct impact.

Prime Minister Andy Burnham called the figures "welcome news" and added: "Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future."