BBC News reports that official figures have shown UK economic growth accelerated in the second quarter of the year, helped by a big jump in oil and gas production.
The Office for National Statistics (ONS) says that compared with growth of 0.4{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the first quarter of the year, the UK economy grew by an estimated 0.7{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the April to June period. Output in the economy during the second quarter was 2.6{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} higher than the same period a year earlier.
The economy has now seen 10 quarters of sustained economic growth.
Oil and gas surge
The ONS said manufacturing output experienced its first fall in two years with output dropping 0.3{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the quarter but a surge in North Sea oil and gas production lifted overall industrial output by 1{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} – the biggest increase since late 2010.
The “mining and quarrying” component of the industrial output figures, which includes oil and gas extraction, rose by 7.8{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the quarter, the biggest increase since 1989.
Construction was flat in the period, recovering from a slight fall the previous quarter.
The UK’s dominant services sector recorded growth of 0.7{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}, following a rise of 0.4{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the previous three months.
The report says that domestic demand is expected to remain strong, as wages rise and the temporary effects of low inflation boost consumer spending.
The ONS said there were also signs that businesses were finally increasing investment.