LONDON: The UK economy grew by 0.7pc in the second quarter, official figures confirmed on Friday, as exports surged and business investment rose sharply.
The second quarter expansion follows growth of 0.4pc in the first quarter and was in line with economists’ expectations.
Consumer spending rose by 0.7pc compared with the previous quarter, representing the 16th consecutive quarter of growth, while business investment grew by 2.9pc, which was much stronger than the 1.5pc expansion expected by analysts.
Exports, which dragged down growth in the first quarter, rose by 3.9pc in the period, according to the Office for National Statistics (ONS), while imports grew by 0.6pc. Net trade alone added one percentage point to growth in the second quarter, the ONS said.
More detailed data also showed stronger construction output was offset by weaker manufacturing activity. Britain’s services sector expanded by 0.7pc in the three months to June, unchanged from an initial estimate.
A spokesman for the Treasury said: “its welcome news that our economy is continuing to deliver healthy growth, with GDP rising in the second quarter of the year, supported by rising export growth and business investment over 30pc higher than at the start of the last parliament.
“This is further proof that the economic plan we’ve pursued in Britain these last five years has laid the foundations for a stronger economy, but with an uncertain global outlook we need to continue working through our long term plan to build a resilient economy.”
