The Office for National Statistics (ONS) has today revealed the UK economy grew by 1.2% in the April to June period – unrevised from its second estimate last month.
While the reading was expected to remain the same – it represented the fastest pace in nine years and took the annual rate of growth to 1.7%.
Today’s reading is the third and final estimate for the second quarter.
Meanwhile, the ONS also revised upwards the quarter one economic growth figures – from 0.3% to 0.4%
The revisions were due to strong construction output, which grew 9.5% during the April to June period – the fastest rate of expansion since 1963.
However, while growth in the second quarter exceeded many expectations, growth in the second half of the year is expected to be slow, due to massive spending cuts introduced by the Government.
Looking at quarter-on-quarter growth, employers’ group, the Confederation of British Industry (CBI), expects the economy to grow by 0.3% and 0.6% in the latter two quarters of 2010.
Many experts feared the spending cuts would push the UK back into recession but yesterday the International Monetary Fund (IMF) said it supported the measures, which are designed to cut the budget deficit.
However, the spending cuts and a hike in taxes will slash the forecast for growth, according to economists.
The IMF is forecasting growth of 2% in 2011 – however this is marginally lower than an earlier forecast of 2.1% growth.