GDP: Green Shoots Amid 0.6% Growth In Q2

The UK economy saw an estimated GDP growth of 0.6% in the second quarter, according to the Office for National Statistics (ONS).

The figure matched market expectations and comes on top of the 0.3% growth that was seen in the first three months of 2013.

The nation recorded growth of 0.6% in both the service sector and manufacturing sectors. Construction output was up 0.9%.

It was the first time since 2011 that the UK has seen back-to-back quarterly increases.

The ONS figures showed all the main sectors of the economy grew for the first time since the third quarter of 2010, adding to hopes for a recovery.

The data boosts the Chancellor's position, seen here visiting roadworkers

Prime Minister David Cameron tweeted: "Today's economic growth figures are encouraging. We are on the right track - building an economy for hardworking people."

Chancellor George Osborne, who has been touring parts of the country's industrial heartland ahead of the data release, shared the sentiment.

Mr Osborne tweeted: "GDP stats better than forecast. Britain's holding its nerve, we're sticking to our plan, the economy's on the mend.

"But still a long way to go."

The size of the economy still remains 3.3% smaller than pre-financial crisis.

Vicky Redwood, of Capital Economics, said: "Of course, we shouldn't get too carried away. Even a 0.6% quarterly rise is fairly mediocre after such a deep recession, and GDP is still 3.3% below its peak.

Construction has grown above other sectors but still lags its pre-2008 peak

"And with households' real pay still falling, bank lending flat and public sector austerity measures building, the economy may struggle to maintain its recent rate of growth in the second half of this year.

"Nonetheless, evidence is building that the economy is gradually getting back on its feet."

The powerhouse services sector, which represents three-quarters of the economy, represented the bulk of the increase.

Within this area, business services and finance rose 0.5% after slipping back in the first quarter - with architectural and engineering activities making the strongest contribution.

Hotels, restaurants and distribution also contributed to the services improvement, growing 1.5%.

Gains in the beleaguered construction and manufacturing sectors, still well below their 2008 peaks, will be especially welcome.

George Osborne has found reason to smile with continued GDP growth

Construction, boosted by Government initiatives to stimulate home buying, rose 0.9% after falling 1.8% in the previous quarter.

Despite welcoming the figures, the Opposition criticised Government policy.

Shadow chancellor Ed Balls said: "After three wasted and damaging years of flatlining, this economic growth is both welcome and long overdue.

"But families on middle and low incomes are still not seeing any recovery in their living standards.

"While millionaires have been given a huge tax cut, for everyone else life is getting harder with prices still rising much faster than wages."

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