UK Economy Grows at Fastest Rate for Two Years

The UK's economic growth has averaged less than 0. 1% in the four Q3s since the pandemic, with an average prediction just months ago for this July to September being 0. 1%. This figure has not been exceeded outside the pandemic since 2017.

Spending on AI and tech have driven the surprise upside over the year, while consumers have been resilient, at least till the autumn, perhaps helped by better economic vibes.

However, this may well not last for the final three months of the year. Consumer confidence has already fallen as petrol and domestic energy prices start to rise again.

There is a significant challenge with everyday cost-of-living pressures in the coming months. Construction and private house building remain depressed.

The UK's economic growth should reset some of the swirl of self-reinforcing negativity, putting the UK on course to be the second fastest growing economy after the US across the major G7 countries which also includes Canada, Japan, Germany, Italy and France.

It is tempting to think about what the economy would have done if the Iran War hadn't happened. If interest rates had been cut instead of their recent rise.

While the latest figure kills the doom, it is clearly not a boom either.

Productivity and investment is also looking stronger, especially after recent revisions. Some of the most encouraging figures are in private sector business investment.

I spoke to the chancellor at Nexeon in Oxfordshire, which is searching for a UK factory to manufacture its cutting edge electric vehicle battery - and British - technology. My colleagues visited British watchmakers in Maidenhead carving out a niche to take on the Swiss.

Expect to see Downing Street investing heavily in