UK GDP Grows 0.7% in Third Quarter, Fastest in Two Years

The UK economy grew by 0.7% in the third quarter, its fastest pace in more than two years, according to figures reported by The Guardian. The reading was described as "robust" growth, with the expansion coming despite elevated oil prices.

On a monthly basis, GDP rose by 0.2% in September, indicating the economy carried momentum into the end of the quarter. The quarterly figure of 0.7% represents a marked acceleration and marks the strongest performance for the UK in over two years.

The report attributes a role to artificial intelligence in supporting the economy's growth over the period. The figures suggest the UK economy has proven resilient in the face of higher energy costs, with activity expanding across the quarter rather than stalling.

For investors, the data points to firmer underlying economic conditions than had been evident in recent quarters. A 0.7% quarterly expansion is a meaningful pickup, and the positive September reading suggests the momentum was not confined to a single month within the quarter. The combination of robust headline growth and continued monthly expansion may inform expectations around the path of interest rates and the outlook for domestically exposed UK equities.

The figures also indicate that high oil prices did not derail growth over the period, a factor that had been a source of concern for the economic outlook. The release will be scrutinised for confirmation that the strength is sustained rather than a one-off, with the September monthly reading providing early evidence that activity held up as the quarter closed.