UK good news continues as Q2 growth revised up to 0.7%

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The Office for National Statistics has increased its estimate for the UK’s economic growth in the second quarter.

Official figures now show UK GDP as expanding by 0.7 per cent in the three months to the end of June, an increase from the preliminary estimate of 0.6 per cent.

The ONS says the change is the result of “small upwards revisions” across a number of the main industrial groupings.

Capital Economics chief UK economist Vicky Redwood says: “The slight upward revision to Q2 GDP continues the run of good news on the UK economy and the spending breakdown looks reasonably encouraging too.

“As indicated by the timelier retail sales figures, consumer spending played a big role, rising by 0.4 per cent quarter-on-quarter. But there was some evidence of a rebalancing towards other sectors too.”

Signs of a recovery in the UK economy have also been building in recent months, with most economic indicators bearing good news.

Business surveys also show that activity strengthened in the manufacturing, services and construction sectors at the start of the third quarter.

In addition, the IMF raised its 2013 economic forecast for the UK from 0.7 per cent to 0.9 per cent at the start of July, despite downgrading its outlook for global growth as a whole.

Close Brothers Asset Management chief investment officer Nancy Curtin says: ”Barely months after the threat of a triple dip, a series of good economic results for the UK means business and consumer confidence is climbing.

”A London-led recovery has spread to the regions and has driven faster growth than expected, and like the US, the UK has shown its resilience in the face of slowing global trade.

”However, the question remains whether the new governor of the Bank of England, Mark Carney, will take this opportunity to put his foot on the gas and increase QE to accelerate the UK’s progress along the road to recovery even further.”