UK economy grow by 3.2%

<p>The ONS has revised its growth for the UK economy.</p>

The UK has recorded a sustained period of growth with a 3.2 per cent increase in the second quarter of the year.

Figures from the Office for National Statistics (ONS) originally estimated a 3.1 per cent growth for the period but revised this to 3.2 per cent after it reported no change on the 0.8 per cent quarter-on-quarter figure. It highlights yet further recovery from the financial crash of 2008 which signalled the start of a recession. This latest forecast represents the UK's best performance prior to the economic downturn.

Construction was one of the top performers between April and June with a better-than-expected figure. The sector output previously noted a 0.5 per cent contraction but the ONS' has revised this to flat. The services sector also enjoyed an expansion of 0.3 per cent, compared to May, adding to an overall 3.6 per cent growth which was also its best performance in over six years.

The UK has not only enjoyed economic growth but it has also outperformed the rest of the G7 states for the year running to the end of June. While the likes of Italy, Germany and France failed to make any gains, the UK has been performing well. Canada was the only other G7 nation yet to report growth although when it reveals its result on August 29th it is not expected to knock the UK off the top.

Speaking about the UK's performance, Paul Hollingsworth of Capital Economics, said: "[with euro area figures] highlighting the fragility of the recovery there, the UK's economic recovery seems likely to remain a distinctly domestic-led affair over the second half of this year."

The UK's economic growth comes after the Bank of England announced that it would be keeping interest rates at a record low of 0.5 per cent for another year.

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