The UK economy expanded by 0.7% in the third quarter of 2026, its strongest quarterly pace since 2024, with services and technology-related activity helping to support growth.
The Financial Times reported on 12 November that output increased from 0.5% growth in the second quarter. Services expanded by 0.9%, with IT, computer programming, consultancy and investment linked to artificial intelligence and cloud infrastructure among the areas supporting activity. Manufacturing also grew, while construction contracted.
Technology investment provides support
The figures point to the growing influence of digital infrastructure spending on the wider economy. Data centres, cloud services and AI-related projects can support demand for construction, engineering, power, software and professional services. However, the benefits may be concentrated in particular industries and locations.
Household spending and business investment remain important to the durability of the recovery. Higher energy costs and borrowing rates continue to weigh on companies and consumers, while a weaker construction sector highlights the uneven nature of the expansion.
Inflation and rates remain in focus
Investors are balancing stronger growth against the possibility that persistent inflation could keep monetary policy restrictive. The Bank of England’s decisions will depend on how prices, wages and economic activity evolve over the coming months.
For international investors, the UK data offer a reminder that headline growth can conceal very different conditions across sectors. The next test will be whether technology-led momentum spreads more widely through the economy.
Source: Financial Times, 12 November 2026.