with tracker mortgages has been boosted by record low UK base rates of 0.5%.
Second-quarter growth in the construction sector has been revised up from 6.6%, the ONS's figure when it published its first estimate of second-quarter GDP late last month, to 8.5%.
This offset a downward revision of second-quarter growth in the UK's dominant service sector from 0.9% to 0.7%. The UK manufacturing sector grew by 1.6% quarter-on-quarter in the three months to June.
Graeme Leach, chief economist at the Institute of Directors, said yesterday: "Today's figures are obviously good news but we shouldn't get carried away. Instead of looking armitron watches for men in the rear-view mirror at what has passed, it would be wiser for us to keep our eyes on the road ahead. We don't expect this level of growth to be sustained through the second half of 2010. But whether or not this slide will turn into a quarterly decline or a double-dip recession remains highly uncertain."
David Kern, chief economist at the British Chambers of Commerce, said: "The upward revision to GDP in the second quarter is good news. This puts the UK in a better-than-expected position as we prepare for the austerity measures that will be introduced over the next few years."
However, he added: "The figures do contain some worrying features. Growth in services has been revised down and capital investment fell after recording strong growth in the first quarter...It is important to bear in mind that the implementation of the tough deficit-cutting programme will inevitably have a serious dampening effect on demand, and risks of an economic setback remain.
"Given the fragility of the situation, it would be dangerous for the Monetary Policy Committee to consider raising interest rates any time soon. Businesses are still facing huge pressures and interest rates must stay as low as possible for as long as possible."
Prada Oily Leather Wallet 88077 BlackSamuel Tombs, UK economist at consultancy Capital Economics, said: "The fact that net trade made no contribution whatsoever to GDP growth added to evidence suggesting that the weak pound is failing to provide much support to the external sector."
marc jacob bagThe UK economy grew by 0.3% in the first quarter, having emerged from deep recession in the final three months of last year.
Tombs said: "While the recovery picked up considerable pace in the second quarter, the absence of any signs that the economy has become better balanced leads us to continue to expect pretty sluggish GDP growth over the next year or so. We maintain our view that the economy will expand by only 1.5% this year and next."
The Office for Budget Responsibility expects 2011 growth of 2.3%.
Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club think-tank, said: "We're not getting too carried away by the apparent strength of these figures - big question-marks remain over the construction figures. Regardless of the debate over the accuracy of the data, Q2 looks like being the high watermark for growth. The expenditure data produced some surprises. The consumer sector is showing great resilience...given that incomes are being squeezed by high prices and weak earnings."
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