A stronger services sector lifted Britain’s economy in the July-through-September quarter, with gross domestic product expanding 0.7% and reaching its best pace since early 2024 at the ONS’s one-decimal precision.
The Office for National Statistics (ONS) released its first estimate Thursday, Nov. 12, following 0.5% growth in April through June. The latest rate equaled the 0.7% recorded in the first quarter of 2024; intervening quarters were below that level when rounded to one decimal place.
Services provided most of the momentum, with output up 0.9% from the previous quarter. Business-facing services rose 1%, and consumer-facing services gained 0.5%. Production increased 0.1%, while construction contracted 0.7% and was down 1.7% from a year earlier.
Computer programming, consultancy and related activities grew 4.4% over the three months through September. The ONS said this industry had led monthly contributions to GDP growth for seven straight months. Some businesses involved in artificial intelligence and cloud computing reported large turnover gains, but the ONS said it could not precisely measure their effect on growth.
GDP stood 1.9% above its year-earlier level. Real GDP per head, a per-person measure, rose 0.7% from the second quarter and 1.7% over the year. Household consumption increased 0.6%, while business investment grew 0.4%.
The Independent reported that investment was flat for most small and midsize businesses, citing Stuart Morrison, research manager at the British Chambers of Commerce. The outlet also reported that 17% of firms expected to increase investment in the coming months, unchanged from the prior quarter and a post-pandemic low. The Independent quoted Morrison saying the figures showed “signs of an emerging two-speed economy.”
The ONS’s quarterly measure draws on output, income and spending data, and the initial estimate may be revised as more information becomes available. The ONS has scheduled its October monthly GDP estimate for Dec. 11 and its next quarterly national accounts release for Dec. 22.
