UK Economy Grows at Fastest Pace in Over Two Years

The UK economy expanded at its fastest rate in more than two years, according to figures reported on Thursday, with growth supported in part by activity linked to artificial intelligence.

The data marks an acceleration in the pace of economic expansion, with the growth rate the strongest recorded in over two years. The reports did not specify the exact percentage increase or the period covered.

The role of AI in the expansion was highlighted as a contributing factor to the stronger-than-usual performance. The reports did not quantify how much of the growth was attributable to AI-related activity.

The figures represent a notable improvement in the UK's growth trajectory, coming after a prolonged period in which the economy had struggled to gain momentum. The reports did not provide detail on which sectors drove the expansion or how the performance compared with earlier forecasts.

For investors, the stronger growth reading is likely to shape expectations around the path of interest rates and the outlook for UK equities and sterling. The reports did not indicate how policymakers or market participants had responded to the data.

Further detail on the composition of growth and the specific drivers behind the AI contribution was not provided in the initial reports.