The Office of National Statistics (ONS) have said they are pleased that the UK economy has grown more than first thought.
The economy grew by 1.2% in the second quarter of 2010. That was the fastest rate of quarterly expansion recorded since the first three months of 2001.The ONS predicted growth would be 1.1%. They attribute this growth to a strong performance in the construction sector; output grew by 8.5% in the second quarter, up from a previous estimate of 6.6%.
Within the services sector, business services and finance posted a rise of 1.5%, revised up from 1.3%.
Reported by the BBC, a spokesman for the Treasury said: “While the government is cautiously optimistic about the path for the economy, the job is not yet done.
“The priority remains to implement the Budget policies which support economic rebalancing and help ensure the sustained growth that the Office for Budget Responsibility forecast this year and next.”
Graeme Leach, chief economist at the Institute of Directors warned that the strong pace of growth would not last.
“Today’s figures are obviously good news, but we shouldn’t get carried away. Instead of looking in the rear view mirror at what has passed, it would be wiser for us to keep our eyes on the road ahead. We don’t expect this level of growth to be sustained through the second half of 2010.
