Enter multiple symbols separated by commas

UK Economy Picked Up Steam in the Second Quarter

A view over the financial district and St Paul's Cathedral towards the west of the city at sunrise in London.
Getty Images
A view over the financial district and St Paul's Cathedral towards the west of the city at sunrise in London.

After growing 0.3 percent in the first quarter, the U.K. economic recovery gained further strength in the second quarter, according to a survey of businesses released on Tuesday.

The report from the British Chambers of Commerce (BCC) said strong export demand, improvements in the employment picture and increased business confidence boosted the economy in the three months till end-June.

The survey of 7,400 businesses provides an early reading of the economy, ahead of the release of the first estimates for second-quarter gross domestic product (GDP) due on July 25.

(Read More: UK Economy: Pre-Crisis Level to Remain Elusive)

"Despite gloomy media headlines in recent months, our economic survey once again shows increased business confidence," John Longworth, director general of the BCC, said.

"It is incredibly encouraging to see export deliveries reach record levels, and the upturn in employment balances is reassuring in spite of the risks at home and abroad," he added.

The survey is likely to boost U.K. finance minister George Osborne who has faced scathing criticism for his austerity policies from the International Monetary Fund and some analysts.

(Read More: Bank of England Offers Ray of Hope for UK Economy)

The report comes a day after the release of the June purchasing managers' index (PMI) for the manufacturing sector, which rose to 52.5 from 51.5 in May. Meanwhile, mortgage loan approvals for house purchases hit a 41-month high in May.

Last week, revisions to GDP data from the Office of National Statistics showed U.K. economic output was flat in the first quarter of 2012, instead of previous estimates of a contraction of 0.1 percent. That data meant the U.K. did not suffer a double-dip recession last year, as was previously forecast.

Contact Economy


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.