UK Q3 2026 GDP rises 0.7% QoQ, matching forecasts
Preliminary data show the UK economy expanded 0.7% in the third quarter of 2026, in line with market expectations, while annual growth held at 1.9%.
The Office for National Statistics reported that the UK gross domestic product grew by 0.7% in the three months to September 2026, matching the market forecast after a 1% contraction in the second quarter. Year-over-year growth remained at 1.9%, also in line with expectations. Monthly GDP for September was revised to 0.2%, above the consensus of 0%.
Industrial production rose 0.3% and manufacturing output increased 0.7% in September, both exceeding market estimates. The data prompted a modest rise in the British pound, which was trading around 1.3264 against the US dollar shortly after the release.
Analysts noted that the stronger manufacturing performance and resilient industrial activity have helped sustain growth despite external pressures such as higher oil prices and geopolitical tensions. The recent GDP figures are expected to influence the Bank of England’s monetary-policy considerations, as policymakers have signaled the possibility of further rate hikes to address persistent inflation.
FXStreet analyst Guillermo Alcalá observed that recent GBP/USD price action suggests the corrective rally from mid-October may be ending, with the pair likely to resume a broader bearish trend unless it breaks above key technical levels.