UK balance of payments narrows as GDP grows

The UK's balance of payments narrowed to £7.38bn between April and June official figures have shown.

According to the e Office for National Statistics (ONS) Britain's deficit with the rest of the world narrowed to £7.383bn from an upwardly revised £11.298bn in the first quarter.

Meanwhile Britain's economy grew at its fastest pace in nine years in the second quarter of 2010 and growth in the first three months of the year was revised slightly higher, by the ONS.

It said gross domestic product (GDP) grew 1.2 per cent in the three months to June, confirming an estimate published last month and in line with economists' forecasts.

The annual rate of growth was also unrevised at 1.7 per cent, as expected.

Growth in the first three months of the year was edged higher to 0.4 per cent from the previous estimate of 0.3 per cent.

Construction output surged 9.5 percent during the second quarter, its fastest rate of expansion since 1963 as it caught up after winter disruption.

Manufacturing grew one per cent on the month and services output was up 0.6 per cent.