UK economy grows 0.7% in third quarter as AI demand lifts output

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Britain’s economy grew 0.7% in the third quarter, in line with expectations. Computer programming and consultancy helped drive growth as demand for AI and cloud computing rose, while the Iran war pushed up energy costs.

The UK economy grew 0.7% in the July–September period, up from a revised 0.5% in the second quarter, the Office for National Statistics (ONS) said on Thursday.GDP was 1.9% higher than a year earlier. It grew 0.2% in September after flatlining in August.Services output rose 0.9% and was the main driver of growth. Computer programming, consultancy and related activities grew 4.4%, helping lift output in the wider information and communication sector by 2.1%.The ONS said computer programming, consultancy and related activities had been “the largest driver of GDP growth across 2026, with evidence that many of the businesses reporting the largest increases in turnover are involved in activities…

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