AI Propped Up UK Growth, but Winter Bills and a Possible AI Slowdown Loom
Source The Guardian
At a glance
The UK economy grew 0.7% in the third quarter, its fastest pace in two and a half years, driven largely by AI-related data centre investment. However, fears of an AI stock bubble and higher winter energy bills threaten to slow growth.
Key points
AI-related spending is estimated to have added 0.3 to 0.4 percentage points to GDP growth this year.
Energy bills are set to rise by about a quarter in January, with annual household gas and electricity costs expected to top £2,000.
Inflation is forecast to climb to nearly 5% next year, cooling real wage growth.
Markets expect the Bank of England to raise interest rates at least twice more, to 4.5%.
Why it matters
If AI investment slows while living costs rise, Britain's economic resilience could weaken.
Original article
AI helped the UK defy expectations – but will Britain’s resilience fizzle out?
The Guardian · Nov 12, 2026, 9:37 PM GMT+9 · theguardian.com
Read on The GuardianAI read the original article and summarized it in plain language. It may contain mistakes, so please check the original for accuracy. The article's copyright belongs to The Guardian.