The UK economy recorded its fastest growth in two years, with GDP increasing by 0.7% in the third quarter, according to new figures from the Office for National Statistics (ONS). The expansion, driven by the service sector, outpaced growth in the previous two quarters and was welcomed by Andy Burnham and Chancellor John Healey.
Service sector drives growth
Data released by the ONS showed economic growth rose to 0.7% in the period from July to September. This follows growth of 0.6% between January and March and 0.5% in the second quarter of the year.
The UK economy has grown slowly for nearly two decades since the financial crisis of 2008. Further setbacks came from the Covid pandemic and price spikes caused by Russia's invasion of Ukraine.
Political reaction
Andy Burnham welcomed the news, saying: "Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future."
He added: "Our job now is to keep focused on what matters to people: bringing down bills, creating good jobs, helping high streets thrive and backing businesses to grow. There is more to do, but we have a clear direction. Giving people breathing space now while making the long-term changes needed to deliver good growth in every part of Britain."
Chancellor John Healey said in response to the latest growth data: "The Middle East conflict has hit growth worldwide, yet Britain is showing standout resilience. Our UK economy is growing at the fastest rate in almost 10 years, outside the pandemic."
Healey added: "We are backing UK investment, innovation and fast growth firms. I want to bring back confidence in Britain."
Household impact
British families have continued to feel the squeeze on prices since the start of the Iran war, which has sent energy and fuel prices rising.
