BREAKING NEWS

BREAKING NEWS

UK growth confirmed at 9-year high

Now Reading:

UK growth confirmed at 9-year high

Text size Aa Aa

Britain’s Office for National Statistics has confirmed the UK economy expanded at its fastest pace in nine years in the second quarter of this year.

But analysts predict tough times ahead with a severe austerity drive likely to slow the economic recovery.

GDP grew 1.2 percent as consumers using up their savings. There was also a big rise in government spending and a surge in construction.

First quarter GDP growth was revised slightly upwards – to 0.4 percent from 0.3 percent.

The figures had little impact on financial markets, although sterling rose after separate data showed a surge in retail sales and that Britain’s current account deficit narrowed more than expected in the second quarter.

The GDP data showed Britons are running down their savings quite severely, which bodes ill for continued consumer spending.