UK economy grows by 0.7 per cent as spending on AI and defence staves off cost-of-living slowdown

Detailed summary

Growth picked up to 0.7 per cent for the third quarter - between July and September - following growth of 0.5 per cent in the second quarter, the Office for National Statistics said today.

Published: 07:09 GMT, 12 November 2026 | Updated: 07:23 GMT, 12 November 2026

UK economic growth accelerated in the third quarter as a spending drive on AI and defence helped stave off a cost-of-living slowdown.

The Office for National Statistics (ONS) published the latest gross domestic product (GDP) figures today.

Growth picked up to 0.7 per cent for the third quarter – between July and September – following growth of 0.5 per cent in the second quarter.

The country's growth has been boosted by business investment, with spending on areas such as technology, infrastructure and defence becoming a key factor.

This is helping to offset the impact of higher energy prices on households and businesses since the start of the Iran war.

Chancellor John Healey said: 'The Middle East conflict has hit growth worldwide, yet Britain is showing standout resilience.

'Our UK economy is growing at the fastest rate in almost ten years, outside the pandemic. We are backing UK investment, innovation and fast growth firms. I want to bring back confidence in Britain.'

Chancellor John Healey (left) and PM Andy Burnham at 11 Downing Street on October 26

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