Growth of 0.3% is a positive sign but the chancellor still has major difficulties to confront
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Britain’s economy has defied the doomsayers. After growing strongly in the first quarter this year, it expanded again in the three months to June – and not by the measly 0.1% forecast by City economists, but a respectable 0.3%.
The latest data shows a 0.4% expansion in June alone as manufacturing recovered its mojo. Meanwhile the construction sector, hit by a slowdown in new projects, turned its hand to repairs and maintenance, reversing a fall in May to post a solid 1.2% growth rate over the second quarter.