In the third quarter of 2026, the U.K. economy grew by 0.7%, matching forecasts from economists polled by Reuters. This growth was supported by a 0.9% expansion in the services sector, which compensated for a modest 0.1% increase in production and a 0.7% decline in construction.
Year-on-year, the economy grew by 1.9% in the three months leading to September, showing an improvement from the previous quarter's 0.5% growth. Additionally, September saw a month-on-month growth of 0.2%, surpassing expectations of stagnation.
U.K. finance minister John Healey highlighted the economy's resilience despite global pressures, while Prime Minister Andy Burnham expressed optimism about future growth. Following the announcement, the British pound fell by 0.2% against the U.S. dollar and remained stable against the euro, with government bond yields showing little change.
These developments suggest a cautiously optimistic outlook for the U.K. economy, which may influence investor sentiment and market dynamics moving forward