Faisal Islam: Why the UK economy is surprisingly resilient

The UK economy grew by 0.7% in the three months to September, its fastest rate for more than two years. The result was far above recent forecasts and suggests the country is on course to be the second-fastest-growing major G7 economy after the US, challenging the prevailing view that Britain is performing unusually poorly.

Investment in AI and other technology helped drive growth, alongside stronger productivity and private-sector business investment. But the figures do not signal a boom: construction and housebuilding remain weak, and rising petrol and energy costs have dented consumer confidence. The Iran conflict adds uncertainty, as its effect on energy prices, borrowing costs and the outlook for the final months of the year remains unclear.