By Daniel Hunter

Official figures have shown that the UK's economy grew by 0.7% in the second quarter of the year.

The growth was in line with the previous estimate. Further good news came from the latest figures from the Office for National Statistics, which showed that growth in the first quarter was stronger than previously thought.

It raised the first quarter growth estimate to 0.4%, up from 0.3% However, its estimate for growth for the full year of 2012 was revised down, from 0.2% to 0.1%

The ONS said that in the second quarter of 2013 the construction and industrial sectors expanded at their fastest pace for three years.

"Few had expected a revision, yet the markets were still largely underwhelmed by the "steady as she goes" growth," Marcus Bullus, trading director at MB Capital, commented.

"Confirmation of the 0.7% uptick in the second quarter had been widely priced in, yet the ONS data still has some pleasing details.

"It's especially reassuring to see the construction sector throw off its dunce hat. For years it has been scowling at the back of the class while other sectors got on with it.

"So for construction sector output to have posted such solid growth in the second quarter - with builders' order books filling up fast - is a clear indicator of increased business confidence.

"Consumer confidence is rebounding too, with household spending now having notched up seven consecutive quarters of growth.

"So far, so conventional - the recovery is being driven by consumer demand and buoyed by rising house prices. Sound familiar?

"Serious questions remain though about how sustainable it is - the ONS has also revealed that business investment fell by nearly £800 million in the second quarter.

"Upbeat consumers and credit-fuelled demand will not be enough to drive the economy forward if Britain's businesses fail to invest."

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