UK economy grows 0.7% in third quarter, fastest pace in more than two years

The UK economy grew by 0.7% in the three months to September, its fastest quarterly pace for more than two years, according to the first estimate from the Office for National Statistics (ONS). Growth accelerated from 0.5% in the previous quarter, offering a stronger picture of activity even as some parts of the economy continued to struggle.

The rise was led by services, which expanded by 0.9%. Production grew by 0.1%, while construction contracted by 0.7%. The ONS said household spending and business investment were the main drivers on the spending side.

The figure is an early estimate and may be revised as more data become available. The ONS also reported that monthly GDP rose by 0.2% in September, after no growth in August; it had previously estimated a 0.1% rise for that month.

The quarterly figure follows 0.5% growth in the second quarter. GDP was 1.9% higher than a year earlier, while GDP per head rose by 0.7% during the quarter.