UK economy sees Q2 growth of 1.1%
The Office for National Statistics (ONS) has today revealed UK economic growth for the second quarter today surged ahead by 1.1% – almost double the rate analysts had forecast.
Meanwhile, economic growth rose by 1.6% on an annualised basis – the highest in two years.
The UK is the first G7 country to release its quarter two GDP figures.
Economists had expected the economy would experience growth of 0.6% but the expansion of 1.1% for the April to June quarter was boosted by an improvement in services output and the fastest rise in construction output in almost 50 years.
The closely-watched services sector experienced its fastest growth in three years, expanding by 0.9% in the three-month period, while manufacturing grew 1.6% – its biggest expansion in over a decade.
Meanwhile, the construction sector grew by 6.6% on the quarter – the fastest pace since 1963.
Despite the positive news, there are fears for future economic growth. Howard Archer, economist at IHS Global Insight, believes: “There is a very real risk that the second quarter will be as good as it gets for the economy for the time being.”
Many leading business groups have warned that the coalition Government’s tough measures to cut the budget deficit could risk pushing the UK back into recession.