Strong first-half growth for UK

Britain's economy grew an unrevised 0.8 per cent in the second quarter, official data showed on today.

Britain's economy grew an unrevised 0.8 per cent in the second quarter, official data showed on today.

The Office for National Statistics (ONS) said year-on-year growth was also unrevised at 3 per cent, as forecast by analysts.

Sterling surged as the figures rekindled expectations that British interest rates will rise again before the year is out.

The implied GDP deflator - a measure of inflation in the economy - picked up to 3.8 per cent in the second quarter from 3.2 per cent in the first three months of the year. That was the highest reading since the third quarter of 1996.

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The data showed consumers were weathering rising borrowing costs. Household expenditure picked up to 0.8 per cent from 0.5 per cent in the first quarter.

The ONS revised up manufacturing's contribution to growth to 0.7 per cent on the quarter from 0.6 per cent.