Household savings are in better shape than feared and business investment is growing more strongly than expected, raising hopes that the UK economy is not as vulnerable as previously thought.

Overall the economy grew by 0.3pc in the second quarter of the year, up from 0.2pc in the first quarter.

Year-on-year growth has been revised down to 1.5pc, however, from the 1.7pc estimated initially. That is the weakest annual growth rate since the start of 2013.

The updated figures from the Office of National Statistics (ONS) showed saving levels to be 5.4pc in the three months to June, an increase similar to that seen in the final quarter of 2016, when it was 5.2pc. The dip, down to 3.8pc, seen in the first quarter in 2017 is largely attributed to one-off changes in the taxation system.

The big change came largely because more workers are now self-employed so officials need to raise their estimate of dividend payments going into household's pockets.