The Office for National Statistics (ONS) has revised revised upwards the official GDP growth figure for the UK economy to 0.2 per cent for the first three months of the year.
This compares with the previous, initial, estimate of 0.1 per cent for the quarter. The ONS said the revision was caused by it receiving data from from the construction sector which was positive.
Growth for the 12 months to the end of March 2018 was 1.2 per cent.
David Cheetham, senior analyst at XTB, said better than expected UK growth in the first quarter has perhaps sown the first seeds of recovery for the pound after the currency hit a 7-month low against the US dollar just yesterday.
"Odds of an August rate hike from the Bank of England have now increased and the upwards revision is in keeping with the bank’s comments that this data is typically subject to revisions.
"The pound fell roughly 10 per cent in a little over 2 months since its April peak.
"While Brexit remains a major potential source of uncertainty there has been mildly positive developments on that front in the ensuing period since the pound peaked, with the government just about managing to hold things together.”
Fund manager Neil Woodford said at the time of the original 0.1 per cent estimate that he expected the figure to be revised upwards.
In the aftermath of this revision he said: "Hard evidence, such as the strength of the labour market and improving public finances, all points to a UK economy that is in much better shape than is widely believed."
David.Thorpe@ft.com
