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The UK economy has grown at a faster rate over the past 12 months than figures previously showed according to the latest data from the Office for National Statistics (ONS) .

In its latest revised estimate for GDP growth released today the ONS confirmed its previous estimate that the economy grew by 0.8% between the first and second quarters.

But it revised upwards its estimate for year-on-year growth for the second quarter from 3.1% to 3.2%.

It is the highest rate of growth to be recorded since the last quarter of 2007 when the economy expanded by 3.7%.

The new figures also showed that the construction sector had not performed as badly as had been previously thought, with quarter-on-quarter growth being flat compared to an initial estimate of a 0.5% contraction.

Figures also confirmed that growth in the April-June period was led by the dominant services sector, which represents three-quarters of output and grew 1% quarter-on-quarter, while manufacturing could manage only 0.2%.

The data reiterated that the UK had finally climbed out of its longest downturn since the war, with GDP surpassing its 2008 pre-recession peak by 0.2%.

It contrasts to the dismal picture in the eurozone, where growth ground to a halt over the second quarter amid a flat performance from France and contraction in Germany.

The Bank of England revised upwards its forecast for UK GDP growth this year from 3.4% to 3.5% this week.

Britain is expected to record the strongest 2014 expansion of the major world economies. But prospects for an interest rate rise have been dampened by stagnant wages.

A change in the methodology for calculating GDP will see new figures published next month, which some economists have predicted will show that the UK surpassed its pre-crisis peak earlier.

A Treasury spokesman said: “Today’s figures confirm that our economy has recovered all of the output lost in the great recession, and is now bigger than its previous peak in the first quarter of 2008.

“The Government’s long-term economic plan is working, with the economy growing at its fastest annual rate in six years.”

Chris Williamson, chief economist at Markit, said: “With the PMI surveys continuing to run at a level consistent with GDP rising 0.8% in July, the economy has started the third quarter with good momentum. The surveys support the view at the Bank of England that the economy is set to grow by 0.7% in the third quarter, contributing to a 3.5% expansion over the whole of 2014.

“There are also good reasons to believe that strong growth can be sustained as we move through the second half of the year, assuming of course that the Ukraine crisis does not escalate.

“Most importantly, the Bank of England shows no signs of risking to kill off the recovery, by raising interest rates, anytime soon. With interest rate tied to wages growth, and the official measure of pay unlikely to pick up in coming months, the first rise in interest rates is widely expected to be delayed until next year.

He added: “However, the pace of growth could cool more than the Bank of England is expecting if the Ukraine crisis escalates. A worsening of the crisis will not only lead to greater risk aversion, meaning many investment and spending decision could be deferred, but EU sanctions will also have a direct impact on the economies of Europe.

“The euro area, which is the UK’s main export market, may be already showing signs of having weakened in the face of the crisis. A stagnation of GDP in the second quarter, due to downturns in Germany and Italy and a stalling of growth in France, has raised concerns about the fragility of the region’s economy and its lack of resilience to shocks such as those posed by Russia. However, it remains too early to gauge the impact of the crisis on the economies of the UK and Eurozone.”