The British economy grew at the fastest rate in four years during the past quarter, with the recovery still picking up speed, according to a respected group of forecasters.
In the three months to the end of June, the National Institute for Economic and Social Research (Niesr) said it expected that UK GDP would increase to 0.9 per cent. The economy grew by 0.8 per cent in the first quarter of the year, according to the most recent estimate from the Office for National Statistics.
The forecast is the most up-to-date analysis available, and includes yesterday morning’s disappointing industrial statistics.
If the prediction is correct, the second quarter’s growth would be the fastest since the second quarter of 2010, when a post-recession bounce sent GDP upwards by 1.2 per cent.
On an annual basis, this would mean that the economy has grown by 3.2 per cent since the middle of 2013, the fastest rate since the financial crisis.
However, the institute expects that growth over the whole year will be slightly slower, at 2.9 per cent. The expansion will then moderate further to just a 2.4 per cent boost in 2015.