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UK growth revised up to 0.7% in Q2
by Sarah Miloudi on Aug 23, 2013 at 09:47
Growth in the UK between April and June has been revised up from 0.6% to 0.7%, the Office for National Statistics (ONS) has said.
Amid growing signs that Britain's recovery is finally sticking, the ONS' second estimate of GDP for quarter two showed that the UK economy improved more than initially thought.
Since the first estimate of GDP was released, retail sales and PMI figures have both been positive, prompting analysts to anticipate further improvements in growth later down the line.
In an update issued this morning, the ONS confirmed GDP had increased by 0.7% between quarter one and quarter two, having been revised up by 0.1 percentage points.
It said that all components of expenditure, with the exception of non-profit institutions, contributed positively to the rise, and commentators were quick to cheer the good news.
Markit's Chris Williamson, chief economist, said: 'The details show a very encouraging picture of a broad-based upturn across almost all sectors of the economy.
'Importantly, the upturn was not simply fuelled by surging spending by households. Instead, exports and business investment were key drivers of the expansion,' Williamson added, pointing out that a rebalancing away from domestic consumption seems to be under way, with the improvements also feeding through to employment, with claimants of Jobseeker's Allowance now falling at their fastest pace in three years.
Echoing these views, Capital Economics' chief UK economist Vicky Redwood also said the latest nudge up in Britain's GDP was positive. She added it looked even better when compared to the recent, more tentative strides forward seen in the US and Europe.
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