Mr Tombs said he was optimistic.
“Our forecast for growth in real GDP remains an above-consensus 3.3 per cent this year and a robust 3 per cent in both 2015 and 2016,” he said.
Bank of England minutes reveal key risks for the UK economy
While the headline rate of economic growth in the UK should be welcomed, it is just that – a headline rate.
When scrutinised, economic data shows services and production were the biggest drivers of the economy, while construction has been dubbed ‘disappointing’ and agriculture also fell.
The service sector is dependent on consumers spending money but there is a concern here.
In the Bank of England’s minutes released last week, Forex.com’s Kathleen Brooks said the Monetary Policy Committee highlighted that its outlook for household spending was weaker for the rest of the year due to real income growth having been slower than expected in the first half of 2014.
“Due to the fact that the UK’s economy is reliant on the service sector, the market may ask how sustainable the expansion is if wages do not pick-up,” she said.
“The Bank of England also expects a ‘modest slowing in output’ in the second half of the year.”
The second reading of the second-quarter UK GDP is expected on August 15 and will no doubt be keenly watched now this headline rate seems to be consigning the crisis to the past.