UK economy grew faster than estimated

<p>Revised numbers mainly due to better performance in the construction industry.</p>

The latest figures from the Office for National Statistics (ONS) have revealed that the UK economy is grew faster than previously estimated for the first quarter of 2015.

According to the latest data, which is the third estimate for the period, the economy grew by 0.4 per cent during the first three months, compared to an earlier estimate of 0.3 per cent.

Better performance from the construction industry than estimated contributed to the improved growth numbers, reports the BBC.

Earlier in June, the ONS said that construction output in the UK was 1.1 per cent lower in the first quarter. However, the latest figures actually show it as just 0.2 per cent lower.

Commenting on the amended figures, ONS chief economist Joe Grice said: "The slight upward revision to growth in the first quarter is down largely to the recently announced new methods to measure construction output."

On an annual basis, this means the economy grew by 2.9 per cent from the first quarter of 2014 – up 0.5 per cent from a previous estimate of 2.4 per cent.

As a whole, 2014 also saw economic growth revised up to 3 per cent from 2.8 per cent. This was the fastest rate of economic growth since 2006 – before the financial crisis.

Household income

Household income has also gone up, according to the ONS figures. The data shows that disposable income has gone up 4.5 per cent year-on-year. This was the fastest pace since the second quarter of 2001.

Economist Howard Archer said economic growth was likely to have accelerated in the three months to June after the uncertainty caused by the general election in May began to subside.

He added that he expected teh economy to grow by 0.7 per cent in the second quarter. Over the course of the year, he said he expects the economy to grow by 2.5 per cent.

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