Britain's economy grew at its fastest rate in two years in the second quarter of 2006, official data showed today.
The Office for National Statistics (ONS) said GDP rose by 0.8 per cent in the April-June period, topping analysts' forecasts for 0.7 per cent growth, which was also the rate for the first quarter of the year.
Interest rate futures showed little reaction to the data, as markets have already priced in a strong likelihood the Bank of England will soon raise rates from their current 4.5 per cent.
The pound rose to a one-month high against the dollar.
The ONS said the annual rate of growth picked up to 2.6 per cent, its strongest in 1.5 years, from 2.3 per cent in the fourth quarter.
The quarterly acceleration was driven mainly by the services sector, which grew by 1.0 per cent.
Retailing, which was lifted by the World Cup soccer tournament, made a particularly strong contribution, helping to more than double distribution, hotels and catering output growth in the second quarter to 1.2 per cent.