"Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend - but there is still a long way to go and I know things are still tough for families"
- Chancellor George Osborne
The pace of growth of British economy accelerated further in the second quarter, as all sectors showed expansion for the first time in three years, a sign measures introduced by the government and the central bank are contributing to growth. The Office for National Statistics published its first official estimate for the second quarter economic output, which showed that the GDP expanded 0.6% between the first and second quarter, up from a 0.3% growth registered in Q1 and in line with analysts' estimates. The economy was supported by all industries, and the last time all the pillars of the domestic economy rose was in the quarter of 2010. Moreover, the country has not seen two consecutive quarters of growth since the middle of 2011.
The biggest upwards contributor to overall output came from the services sector, which accounts around 80% of overall GDP. Activity at service sector rose by 0.6% and pushed the GDP 0.48 percentage points higher. Recent data offers a relief to the government and the Bank of England, diminishing the possibility that Mark Carney will introduce any additional stimulus measures anytime soon. Figures also mean that the U.K. economy has now recouped almost 50% of its total 7.2% contraction between 2008-2009 recession, while output remains just 3.3% below its pre-recession peak.
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