Second quarter GDP growth revised up

The Office for National Statistics has said that the UK economy grew more in Q2 than previously thought. In fact, it was the biggest quarterly rise for nine years.

According to the ONS, the economy grew by 1.2% in the three months to June. This is up from the preliminary estimate of 1.1% and analysts do not expect it to be revised down. The additional growth has been mainly attributed to the construction sector.

The UK economy only grew by 0.3% in the first three months of 2010.

The ONS figures show that Britain’s economic recovery in the first half of the year was stronger than expected, but economists have warned that spending cuts and a deteriorating global economy will mean this growth is likely to falter and not extend into 2011.

Gross Domestic Product data also showed that household expenditure rose 0.7% on the quarter and 1% on the year – the biggest quarterly rise since the first quarter of 2008, following a 0.1% fall in the first quarter.