News update as of November 13, 2026. This reflects conditions at the time of writing and is for informational purposes only, not financial advice.
The UK economy grew 0.7% in the third quarter of 2026, according to Office for National Statistics data released on Thursday, November 12. That is the fastest quarterly growth in more than two years, and it matched economists’ forecasts.
The Key Numbers
- Q3 GDP: +0.7% quarter on quarter, up from +0.5% in Q2
- Annual growth: +1.9%, in line with forecasts
- Services: +0.9%
- Production: +0.1%
- Construction: -0.7%
What Drove Growth
Services did the heavy lifting. The ONS said information and communication was the largest contributor to growth this year, with many of the fastest-growing firms working in artificial intelligence and cloud computing. Construction was a drag, falling 0.7% in the quarter.
Why the Pound Didn’t Rally
Strong growth would normally support a currency. But the figure was exactly as expected, so there was no surprise for markets to react to. GBP/USD edged up to around 1.3260 after the release but remained about 1.4% lower over three days.
The bigger story for the pound has been the US dollar. After hot US inflation data, the dollar rallied against almost every major currency, and GBP/USD fell from around 1.3450 earlier in the week.
What It Means for the Bank of England
The Bank of England raised rates to 4.00% on November 5, its first hike since 2023. Solid growth gives the Bank more room to keep policy tight without worrying about tipping the economy into recession. The next key test is UK inflation for October, due on November 18, ahead of the Bank’s December 17 decision.
Trader Takeaway
Data that matches forecasts rarely moves markets, however impressive the headline. What matters is the gap between the actual number and expectations. Learn more in How to Read an Economic Calendar Like a Trader.