Britain's economy picked up more speed between July and September, growing at its fastest pace in more than three years and building on an unexpected turnaround that has buoyed the government.
Gross domestic product rose by 0.8 percent, faster than the 0.7 percent achieved in the April-June period, Britain's Office for National Statistics said on Friday.
The quarterly growth and the year-on-year rate of 1.5 percent were in line with forecasts by economists in a Reuters poll. The numbers also made Britain, until recently a laggard among the world's rich countries, one of its fastest-growing economies with an annualised growth rate of over 3 percent.
British government bond prices initially rose, reflecting expectations among some investors that quarterly growth might have been closer to 1 percent, but quickly fell back. The pound strengthened slightly against the dollar and the euro.
The turnaround has given a boost to Conservative Chancellor George Osborne, who defied calls from the International Monetary Fund and the opposition Labour Party to bring forward spending in order to get the economy off the ropes.
The government hailed the growth figures as proof that its tough approach to public spending was paying off.
"Many risks remain, but thanks to our economic plan, the recovery now has real momentum," a Treasury spokesman said.
The growth between July and September meant the British economy expanded for three successive quarters for the first time since 2011.
Britain's economy remains 2.5 percent smaller than its previous peak in early 2008.
Friday's data showed Britain's giant services sector, which accounts for nearly 80 percent of the economy, expanded by 0.7 percent from the second quarter and was now above its peak before the financial crisis hammered Britain.
Growth in services was driven by the private sector, while government services lagged behind, a reflection of Osborne's push to curb public spending.
Manufacturing grew 0.9 percent, and construction, which has begun to recover after a sharp contraction caused by the crisis, expanded by 2.5 percent, the strongest in more than three years as house building picked up, the ONS said.
Source: Reuters
