Europe News

UK grows by 0.7% as industrial production improves

GDP shows UK is back on track: Pro
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GDP shows UK is back on track: Pro

The U.K.'s gross domestic product (GDP) grew by 0.7 percent in the second quarter of 2015, according to preliminary official data, meeting expectations.

This included a stronger contribution from industrial production, but the services sector is still driving much of the U.K.'s growth, with an 0.7 percent rise. Construction was flat during the quarter amid uncertainty about house prices ahead of May's election.

The slight rise from first-quarter GDP growth of 0.4 percent is unlikely to sway the Bank of England's rate-setting committee from its current cautious path on rate rises. Economist Gertjan Vlieghe, a former assistant to Mervyn King, Mark Carney's predecessor as governor, will join the MPC in September, replacing David Miles, the bank said Tuesday.

George Osborne tweet

George Osborne, the U.K.'s Chancellor of the Exchequer, tweeted in response to the news that Britain was "motoring ahead," but stressed that the country must "stay on road we've set out on."

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