UK economic output grew by 0.6% in the second quarter – bang in line with City forecasts – but was nevertheless 3.3% adrift of its pre-Great Recession peak in the opening three months of 2008.
The rise in GDP, which followed a 0.3% increase in the first quarter and 0.2% decline in the final three months of last year, was revealed in figures published yesterday by the Office for National Statistics.
Manufacturing output rose by 0.4% in the second quarter, having fallen by 0.2% in the opening three months of this year.
The UK's dominant services sector grew by 0.6% in the three months to June. Construction output rose by 0.9%, from a 12-year low in the first quarter.
Vicky Redwood, chief UK economist at consultancy Capital Economics, said: "The first estimate of GDP in Q2 confirmed the UK recovery is picking up pace. While there are still significant obstacles to overcome before a strong and sustained recovery is in sight, the economy is continuing to move in the right direction."
However, Ms Redwood cautioned against getting "too carried away".
She said: "Even 0.6% quarterly growth is fairly mediocre after such a deep recession and GDP is still 3.3% below its peak. And the strength of the recent pick-up has been a bit surprising given the lack of any obvious drivers for growth.
"With households' real pay still falling, bank lending still flat and the public sector austerity measures building, the recovery may struggle to maintain its recent growth rate in the second half."
Ms Redwood added: "That said, given the boost to the 'feel-good' factor from the recent run of events, good weather, Royal baby etc, it looks like the recovery will maintain its momentum into the start of the third quarter at least."
UK GDP in the second quarter was up 1.4% on the same period of 2012 – the strongest year-on-year increase since the opening three months of 2011.
However, Ms Redwood noted this year-on-year comparison had been "flattered" by the depressing effect of the extra Diamond Jubilee bank holiday on economic activity in the second quarter of 2012.
Jill MacBryde, vice-dean of knowledge exchange at Strathclyde Business School, said: "It's encouraging to see further improvement in the UK manufacturing figures, which indicate a slow return to 'normal trading'."
She added: "The industry has been hit hard by the economic downturn in recent years and is badly in need of renewed confidence. I think we are starting to see more positive signs from a market which has already undergone a difficult period of consolidation. The hope now is we're starting to see longer-term growth rather than a short-term blip."
Colin Borland, head of external affairs for the Federation of Small Businesses in Scotland, said: "A growing economy is testament to the hard work of British businesses over the last tough few years. (The GDP) figures match the FSB's small business index, which showed confidence among Scotland's small firms is the highest for a year and the number looking to hire is the highest since 2010.
"The UK government should now look to further support these businesses by increasing competition in banking and helping small businesses get a fair deal on their utility bills."
Frances O'Grady, general secretary of the Trades Union Congress, said: "After years of bumping along the bottom, it's encouraging to finally see some growth in the economy. But it's a measure of how poor the economy is faring that this level of growth is being welcomed.
"We remain stuck in the slowest recovery for a century. The bigger picture is an economy that has grown half as much as forecast when the (Coalition) Government came to power. The state of the economy will not be judged on output figures, but on whether people's living standards start rising again."
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