British consumer spending picked up at its fastest rate in two years in the second quarter to leave overall economic growth 0.8 per cent higher than in the first three months of the year, official data showed today.
The Office for National Statistics also said GDP was 2.6 per cent higher in the April to June period on a year earlier. That was also unrevised from the first estimate and in line with analyst expectations.
The new breakdown revealed that household spending grew by 1 per cent on the quarter, leaving it 2.4 per cent higher on the year. That was the fastest quarterly rate since the second quarter of 2004 and partly reflected strong retail spending in the run-up to the World Cup soccer tournament.
The figures are likely to keep intact expectations the Bank of England will raise interest rates again before the end of the year, particularly as price pressures have picked up strongly.