26 Jul 2013

uk economy

The recovery in the U.K. economy is gathering pace as rapidly rising house prices encourage consumers to forget austerity and spend rather than save.

Gross domestic product grew by 0.6% in the second quarter, double the rate of expansion seen in the first three months of the year. The dominant service sector got a boost from rising consumer confidence, but manufacturing and construction also contributed to faster growth.

The figure was in line with forecasts and will reduce the pressure for new Bank of England Governor Mark Carney to pump more cheap money into the economy by increasing the central bank’s quantitative easing program.

Published in CNNMoney London.

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