The British economy is growing faster than the Bank of England expected as a manufacturing surge dispelled fears of a recession. 

Monthly GDP rose by 0.5pc in June, according to the Office for National Statistics (ONS), which was more than double economists’ consensus expectation of 0.2pc growth.

Improvements in the manufacturing sector meant quarterly UK real GDP climbed by 0.2pc between April and June, according to the first official estimate.

This surpassed both economists’ forecasts of 0pc quarterly growth and the Bank of England’s forecasts of a 0.1pc increase.

The boost to the economy came despite successive doctors and rail strikes, which helped to trigger a 0.8pc month-on-month fall in health sector GDP.

It followed a 0.1pc rise in the first three months of the year, an unrevised fall of 0.1pc in May and growth of 0.2pc in April.