GDP rise of 1.2% in second quarter the highest in nine years

UK GDP rose by 1.2% in Q2 as previously estimated, representing the biggest increase since the first quarter of 2001.

According to the ONS, the economy was particularly boosted by growth in the construction sector, where output was up 9.5%. Meanwhile, business services and finance saw output up 1%, although transport, storage & communications continued to suffer, down 1.5%. Jeremy Cook, chief economist at World First, comments: "The figure is still very reliant on a 9.5% increase in construction spending, a phenomenon that will not be replicated in Q3, so a drop in growth is almost inevitable at the next reading. "While the likelihood of a double-dip recession has lessened, it has by no means been...