Financial services in the vanguard as economic recovery gathers speed
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The UK economy grew by 1.1% in Q2 2010, twice the rate predicted by most economists, according to the Office of National Statistics.
Gross domestic product for April to June was far higher than the 0.3% seen in the first three months of the year.
The ONS says this growth is mainly due to strong performances in business services, financial services and the construction sector.
But the Royal Institution of Chartered Surveyors expects the figures to be revised. It says: “We are not convinced the rebound in construction has been as robust as is implied by this data. The latest RICS survey shows development starts still falling. As a result, we suspect the Q2 growth figure will be revised downwards as more information becomes available.”
Jonathan Loynes, chief European economist at Capital Economics, says: “The increase in GDP is a pleasant surprise but this is likely to be as good as it gets.”
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