The British economy is weathering the international turbulence better than expected. According to the latest official figures, GDP grew by 0.7% in the third quarter of 2026, driven in particular by investments and activities linked to artificial intelligence.
Published by the Office for National Statistics (ONS), these data show an acceleration after a growth of 0.5% in the second quarter. In one year, British GDP increased by 1.9%. The United Kingdom thus recorded the second best quarterly growth of the G7, behind the United States. An action that occurs at a time when the war in the Middle East fuels tensions in the energy markets.
AI contributes to the resilience of the British economy
The services sector is the main driver of this progression. It recorded an increase of 0.9% during the quarter. IT activities, programming and consulting have especially contributed to this dynamic. According to the ONS, this sector has been the main driver of British growth since the beginning of the year. Many of the companies with the biggest revenue increases are working on artificial intelligence and the cloud. Manufacturing of computer, electronic and optical products also increased by 4.6% in the third quarter.
The Bank of England confirms this trend in its November economic report. According to their estimates, new activities linked to AI represent just under a fifth of GDP growth from the beginning of 2026. This estimate is based on an indicator that includes computer programming, consulting, information services and certain software publishing activities. The institution specifies, however, that not all of these activities are directly related to AI. He also notes that the productivity increases associated with this technology remain modest at this stage.
This dynamic is not limited to technology companies. Business investment increased by almost 5% in the first half of 2026. Spending on information and communication technologies contributes to this increase, particularly to meet growing needs related to artificial intelligence.
An energy shock threatens the coming months
The good performance of GDP with artificial intelligence does not mean that all sectors are doing well. Construction fell 0.7% in the third quarter and accommodation and food services activities also fell 0.5%. Household consumption rose 0.6%, but economists question its ability to withstand rising energy spending.
The Bank of England also has to deal with persistent inflation. It raised its key interest rate by 0.25 points on November 4, taking it to 4%. British inflation reached 3.5% in September and could approach 5% by mid-2027 according to its projections. Therefore, a new increase in energy costs could affect purchasing power and slow down activity in the coming quarters.
