UK economy grows at fastest rate for more than two years

JUST IN: UK economy grew 0.7% in the three months to September, its fastest rate in more than two years, official figures show.

The UK economy just grew 0.7 percent in a quarter, its fastest pace in over two years.

That's July to September, fresh from the Office for National Statistics this morning, and you can see the jump right here on the chart. The previous quarter was slower, so this is a genuine acceleration, not a rounding error.

What's driving it? Services, mostly. Hotels, restaurants, consultancy, and here's the detail I like, computer programming had its fastest growth in three years. The ONS chief economist said it plainly, AI linked businesses are boosting the sector. So the AI boom isn't just inflating Nvidia's share price, it's showing up in British GDP.

Prime Minister Andy Burnham called it welcome news and hope for the future, which is what every prime minister says about a good number. But after a year of global costs squeezing households, the British consumer was supposed to be flat on the floor. Turns out they were out spending.

This is Sara White, reporting for HIT.