Faster UK growth boosts recovery hopes

The UK’s economic recovery hopes were boosted today when official figures revealed that the pace of growth accelerated faster than expected in the third quarter of 2011.

GDP increased by 0.5% in the three months to the end of September, representing an improvement on the 0.1% rise in the previous quarter, the Office for National Statistics revealed. Economists had predicted a figure of between 0.3% and 0.4%.

The figures will help ease some of the fears about the strength of the recovery after the economy effectively flatlined over the previous nine months.

But the growth is still below its long-term average and economists warn the latest figures were flattered as GDP played catch-up after the previous quarter, which was hit by one-off factors such as the royal wedding.