AI rollout boosts economy as slowdown fears mount

The UK economy grew at its fastest rate for more than two years in the three months to September, according to official figures. The Office for National Statistics (ONS) said GDP rose by 0.7% in the third quarter, beating market expectations. ONS chief economist Grant Fitzner said: "The economy grew robustly in the third quarter almost entirely due to strong and widespread growth in the services sector. Within services, computer programming again increased strongly, as it has all year, registering its fastest growth in the last three years. We continue to see evidence that AI-linked businesses helped to boost this sector." The data showed growth from computer programming, consultancy and related activities rose by 4.4%, cementing the category's position as the largest driver of GDP growth across 2026 to date. However, there is evidence of greater caution since the end of the period. While there is currently downward pressure on fuel prices, businesses have already been swallowing big rises to their energy costs. Households on the energy price cap saw a 4% increase in October, and a hike above £440 is predicted from January by the energy supplier EDF. Financial market participants currently see at least two further interest rate hikes by March next year, according to London Stock Exchange Group data.