According to the Office for National Statistics’ (ONS’) latest gross domestic product (GDP) figures, monthly growth in September was 0.2%, up slightly from 0.1% in August.
Quarter-on-quarter, services output grew by 0.9%, marking the ninth consecutive quarterly growth period seen in this sector.
Construction continues to decline
Meanwhile, construction output fell by 0.7%; this follows a fall of 0.9% in the three months to August 2026, revised up from a fall of 1%.
New construction work fell by 1.6% over the period, while repair and maintenance grew by 0.5%. Within new work, the largest negative contribution came from private housing, which fell by 4.7%.
Grasping the next buy to let opportunities
Sponsored by Aldermore
In repair and maintenance, the largest positive contribution came from private housing repair and maintenance, which grew by 1.5%.
Grant Fitzner, the ONS’ chief economist, said: “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.”
Colin Bradshaw, chief executive at data firm TwentyCi, said growth was a “welcome sign of resilience” in the economy and could boost confidence among movers and mortgage borrowers.
He continued: “However, we shouldn’t assume that stronger economic growth will immediately translate into a significant uplift in housing market activity. Our latest data shows a market where supply is continuing to grow. However, buyer demand remains more subdued.
“For mortgage lenders and brokers, the challenge will be turning improving economic sentiment into actual borrowing and transaction activity. Affordability pressures and mortgage pricing remain important considerations for households, but the underlying level of available housing stock gives buyers more options than they’ve had for some time.”
