25 Jul 2010

UK economy grows more strongly than predicted

2:02 pm on 25 July 2010

Britain's economy grew by 1.1% in the second quarter of the year, marking a sharp pick-up in pace from the first three months of the year.

It was the fastest quarterly expansion since 2006, almost double rate expected by economists, and a leap from the 0.3% growth of the first quarter, the BBC reports.

Much of the growth came from the services sector. Business and finance posted a 1.3% rise, its strongest in almost three years. The construction industry also showed strong growth.

The only sector to register a fall was transport and communications - down 0.7% following the impact of Iceland's volcanic ash cloud in April.

The growth figure was a preliminary estimate from the Office for National Statistics (ONS). It said the last time the UK had growth of more 1.1% in any quarter was in 1999.