A surge in consumer spending helped the US economy to grow by 3.2%, on an annualised basis, during the first quarter of the year.

Although the rise in gross domestic product was slightly lower than expected, it indicated that the US economy is continuing to recover from its longest and deepest recession since the 1930s. Analysts had predicted an annualised growth figure of 3.4%, and today's figure was also significantly lower than in the fourth quarter of last year, when the economy grew at 5.6%.

The price of oil rose to nearly $86 a barrel on the news, driven by the view that the global economy was heading for a full recovery and amid hopes of a bailout for Greece.

Consumers increased their spending this quarter by 3.6%, the strongest showing since early 2007. That marked a big improvement from the fourth quarter when spending grew at just 1.6%.

Britain's economy grew at just 0.2% in the first quarter of 2010, less than forecast. On an annualised basis that is equal to slightly over 0.8%, which leaves the British recovery some way behind the US.