Britain's economy grew 0.7 per cent in the first quarter, a faster pace than previously thought, boosted by higher estimates for government spending, investment and tax income, official data showed today.
In its final release of Q1 GDP data the Office for National Statistics (ONS) said year-on-year growth was also revised upward to 3.4 per cent - its highest in over three years - from 3 per cent, helped by a downward revision to the figure for Q1 2003.
The Office for National Statistics said the UK's current account trade deficit was £5.3 billion sterling in the first quarter, well below the £7.3 billion economists expected.
Government spending growth was revised up sharply to 1.2 per cent from 0.7 per cent, while capital formation, or investment, growth for the quarter was revised up to 1.7 per cent from 1.1 per cent.
The gilt market showed little reaction to the figures but dealers said they might give the Bank of England some slight anxiety about whether it can afford to leave interest rates on hold in the face of stronger growth.
Balance of payments data showed the current account deficit came in sharply lower than expected, helped by an improved trade balance in services and higher investment income.
Nonetheless, the deficit on trade in goods rose to a record £13.9 billion in Q1.
Sterling rose more than a quarter cent against the dollar and strengthened by 15 ticks against the euro after the data.