UK economic growth gathers pace in second quarter

The UK’s economy gathered speed in the second three months of this year, boosted by a jump in exports and business investment in the latest sign the country’s recovery is broadening out.

Official figures yesterday showed UK GDP rose by 0.7% in the second quarter, confirming a preliminary reading, and up from 0.4% in the first quarter.

Exports contributed the most to growth in the second quarter.

Business investment also helped, good news for the government, which hopes to broaden a recovery led mainly by services and household spending.

“While the figures point to some rebalancing in the economy towards investment and exports, it is much too early to be satisfied with where we are, particularly on the trade figures,” said David Kern, chief economist at the British Chambers of Commerce.

Net trade boosted Britain’s GDP by 1.0 percentage point on the quarter, the biggest contribution in four years, the Office for National Statistics said.

Exports jumped 3.9% on the quarter and 8.1% compared with the same quarter last year, the biggest year-on-year rise since the first quarter of 2011.

But analysts worry the improvement in trade will be fleeting because of the persistent strength of sterling.