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UK Economy Grows 0.7% in Q3, with AI Emerging as an "Additional Growth Engine"
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The UK economy expanded by 0.7% quarter-on-quarter in Q3, in line with market expectations. The services sector grew 0.9% quarter-on-quarter, production output rose 0.1%, and construction contracted by 0.7%, partly offsetting the overall gain. Within services, information and communication was the core growth driver, up 2.1% quarter-on-quarter. The Office for National Statistics said the sector was the biggest contributor to GDP growth in 2026, with evidence showing that the businesses with the highest revenue growth are all engaged in AI and cloud computing-related operations. However, due to limitations in data collection methods, the specific contribution of such operations to revenue cannot be quantified.
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