UK growth accelerates as recovery gains traction
All main industries showed expansion for the first time in three years
Chancellor of the Exchequer George Osborne meets staff at Warburtons Bakery in Wednesbury near Birmingham. Photograph: Stefan Rousseau/PA Wire
UK economic growth accelerated in the second quarter as all main industries showed expansion for the first time in three years, indicating Britain’s recovery is gaining traction.
Gross domestic product increased 0.6 per cent from the first quarter, when it rose 0.3 per cent, the Office for National Statistics said in London today.
Services, production, construction and agriculture all grew, the first time that has happened since the third quarter of 2010.
From a year earlier, GDP rose 1.4 per cent. Strengthening labour-market and retail-sales data in the past month have added to signs that the economy is on the mend after a recession that’s left GDP 3.3 per cent below its peak in early 2008.
The Bank of England will outline next month its approach to forward guidance on policy as new Governor Mark Carney looks to cement the economic rebound.
“The firmer signs of recovery make it all the more important that the MPC reassures the markets that interest rates will stay low even as the recovery gathers further momentum. So the committee is still likely to implement forward guidance at its next meeting.”