The UK economy grew at its fastest rate for more than two years over the 12 months to September, according to new figures.
A 0.7% expansion was also recorded between just July and September, all of which was described as “welcome news” by Andy Burnham.
“Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future,” the prime minister said.
Economic growth has clearly accelerated from the second quarter of the year, between April and June, when gross domestic product (GDP) rose by 0.5%.
The figures are particularly welcome considering the jump in the cost of petrol, diesel and natural gas prices triggered by Donald Trump’s war in Iran and the Russia-Ukraine conflict.
Inflation has risen this year to 3.5% as a result, with the cost of petrol reaching over £1,70 a litre and diesel approaching an average of £2 a litre.
Prices are also expected to soar in the coming months as the height of winter approaches, with wholesale natural gas costs up 180% on a year ago.
The Bank of England chose to raise interest rates by a quarter of a percentage point to 4% last week in a bid to reduce that inflationary pressure.
According to the Office for National Statistics, an increase in the services sector helped drive this economic expansion with computer programming registering its fastest growth for the past three years.
ONS chief economist Grant Fitzner said: “The economy grew robustly in the third quarter almost entirely due to strong and widespread growth in the services sector.
“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.”
The positive economic growth comes after the ONS recorded just a 0.2% growth in the month of September.
Chancellor John Healey said: “The Middle East conflict has hit growth worldwide, yet Britain is showing stand-out resilience.
“Our UK economy is growing at the fastest rate in almost ten years, outside the pandemic.
“We are backing UK investment, innovation and fast growth firms. I want to bring back confidence in Britain. Breathing space now and fresh hope for the future.”
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