Britain's economy resumed growth in the third quarter by more than economists forecast, boosted by Olympic ticket sales and a surge in services.
Gross domestic product rose 1 per cent from the three months through June, the fastest growth in five years, the Office for National Statistics said in London today.
The pound rose after the data were published. The surge in growth reflects a boost from the Olympics and a rebound from the second quarter, when GDP was affected by an extra public holiday.
It may mask underlying weakness in the economy and Bank of England policy makers will study the data as they assess the strength of the recovery and decide whether to expand stimulus next month.
"Looking through the distortions, the likelihood is that the economy is eking out limited growth," Howard Archer, an economist at IHS Global Insight in London, said before the data was announced.
"With any recovery currently looking fragile, feeble and far from guaranteed, the UK is far from out of the economic woods."
Services, which make up about three quarters of GDP, surged 1.3 per cent in the third quarter from the previous three months, the most in five years, the ONS said.
Olympic ticket sales are estimated to have added 0.2 percentage points to GDP. Production rose 1.1 per cent, the most in more than two years, while manufacturing increased 1 per cent.
Construction output fell 2.5 per cent, a third straight quarterly decline.
Bloomberg
