GDP figures show UK economy back to pre-crisis levels, ONS reports

UK GDP was up 0.7 per cent in the three months to June

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The Independent Online

UK GDP grew 0.7 per cent in the three months to June,according to the Office for National Statistics. This tenth straight quarter of growth has taken the economy level with its pre-recession peak.

GDP is the main indicator of economic growth. The 0.7 per cent growth of GDP in the second quarter beats first quarter growth of 0.4 per cent.  The figure also outstrips GDP in the second quarter of 2014 by 2.6 per cent.

“After a slowdown in the first quarter of 2015, overall GDP growth has returned to that typical of the previous two years,” said Joe Grice, chief economist at the ONS.

Two sectors showed markedly improved performance: services, where output was up 0.7 per cent, and construction, which was up 1 per cent.

Industries have shown differing trends since the financial crisis. Construction and production have suffered the most, whereas services has grown steadily, though slowly.

The service sector has improved faster than production or construction

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Improved economic growth may add to calls for a rise in interest rates. Mark Carney, Governor of the Bank of England, has hinted that interest rates could rise by the end of the year, but any change is likely to be gradual.

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