Services lead UK growth of 0.7% as construction contracts
The first estimate for July to September shows a faster pace of growth than in spring, with markedly different results across the main sectors.
UK economic output increased by an estimated 0.7% between the second and third quarters of 2026, according to figures released by the Office for National Statistics on 12 November. Output had grown by 0.5% in the preceding quarter. The estimates measure changes in the volume of economic activity after accounting for price changes.
The headline reflects a strong contribution from services. The ONS estimates that service output increased by 0.9%, with business-facing services an important part of that increase. Production edged up by 0.1%, while construction output fell by 0.7%. The Guardian reported the figures on Thursday morning, when the release appeared in its Economy most-read list.
The quarter in three months
The monthly estimates included in the bulletin show that output rose by 0.4% in July, remained flat in August and rose by 0.2% in September. The latest release revised August down from an initial estimate of 0.1% growth. Quarterly growth compares the level of activity over the whole period with the previous quarter, so adding the three monthly changes answers a different question.
The ONS also estimates that real GDP per head increased by 0.7% on the quarter and 1.7% from a year earlier. Dividing output by the population provides a way to judge whether aggregate growth was accompanied by an increase in output per person. Household income, spending power and the distribution of gains require their own measures. The comparison with the same period in 2025 gives a longer view than the quarter-on-quarter figures and is less dependent on movements in any single month.
Analysis — how widely did growth spread?
A single national figure can describe a recovery in activity while leaving firms in different industries with very different conditions. The difference between services and construction is therefore central to interpreting this release. Stronger service output can carry the aggregate figure even when a business tied to building activity is operating in a shrinking sector.
The monthly sequence is also relevant to how businesses read the quarter. Growth in July and September, separated by a flat August, gives a less uniform picture than the quarterly increase might suggest. The distribution across industries and months helps explain why the headline can be accurate without matching every employer’s or household’s experience.
The ONS lists 22 December as the next release. That will provide another opportunity to see whether later information changes the size or composition of growth. The first estimate puts services at the centre of the quarter’s expansion. A broader improvement would need to show up in subsequent results for the sectors that contributed less this time.