UK economy grows in second quarter

Britain's economy expanded slightly over the second quarter thanks to strong output in June and despite inflation remaining high, official data showed on Aug. 11.

Gross domestic product grew 0.2 percent in the April-June period after output expanded 0.1 percent in the first quarter, the Office for National Statistics said in a statement.

"Across the quarter as a whole, GDP grew a little with widespread growth across manufacturing, aided by falling raw material prices," said Darren Morgan, director of economic statistics at the ONS.

The economy grew by a stronger-than-expected 0.5 percent in June, sending the pound higher against the dollar in early London trading.

Output in June was lifted especially by strong manufacturing and construction output, the ONS added.

The strong performance at the end of the quarter came despite UK inflation remaining close to eight percent, causing the Bank of England to last week raise its key interest rate for a 14th time in a row.

Despite Aug. 11's bright data, economists said the UK remained at risk of recession this year, especially as the growth numbers could see the BoE keep on raising interest rates.

June's output rise "was mostly due to the return to the normal number of working days" in the month after a public holiday in May for the coronation of King Charles III, noted Ruth Gregory, deputy chief UK economist at Capital Economics.

"We still think that with most of the drag from higher interest rates still to come, GDP will fall in the third quarter and a mild recession will begin," she added.