The UK economy grew slightly in the second quarter of the year, official figures show, raising hopes that Britain can avoid a recession despite rising interest rates.

Gross domestic product (GDP) expanded by 0.2pc in the three months to June, according to the Office for National Statistics, following an expansion of 0.1pc in the previous quarter.

It was ahead of economists expectations of zero growth, thanks to a big final month.

On a monthly basis, the economy grew by 0.5pc in June as businesses bounced back from the extra bank holidays for the Coronation in May.

It had slumped by 0.1pc in May, havin grown by 0.2pc in April.

It comes despite a sequence of 14 consecutive interest rate rises by the Bank of England as it battles to bring down rampant inflation, which still stands at 7.9pc.

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