UK economy posts 0.7% growth in Q3, outpacing G7 peers

Britain's economy grew by 0.7% in the three months to September, the strongest quarterly expansion in over two years, according to economists monitoring the country's performance. The increase exceeds the recent forecast of 0.1% and the Office for Budget Responsibility's estimate of 0.3% made at the Budget three weeks earlier. The growth rate has not been surpassed since 2017, positioning the UK as the second-fastest expanding G7 economy after the United States.

Analysts attribute the surprise upside partly to increased spending on artificial intelligence and technology, which has bolstered investment across sectors. Consumer spending remained resilient through the autumn, while the pound reached its highest level since the Brexit referendum. Recent data also show improvements in productivity and private-sector business investment.

The outlook, however, remains uncertain, with some observers cautioning that the strong performance may not continue through the final quarter of the year.