U.K. GDP data for the third quarter remained unrevised at 1.0% growth, the strongest growth in five years, in line with forecasts of 0.6%, confirming the economy had left three consecutive quarters of contractions after experiencing a double-dip recession.
The annual reading was downwardly revised to -0.1% from 0.0%.
Details with the release showed that exports led the advance with 1.7% from the prior drop of 1.1%, contributing with 0.7 percentage point to total growth, while, on the other hand, imports plunged 0.4% from a prior of 1.4% advance.
Consumer spending edged up 0.6% on the quarter, recording the highest level since the second quarter of 2010, where it contributed 0.4 percentage point to growth. Business investment surged 3.7%.
Regarding sectors, services advanced 1.3% during the quarter and industrial production soared 0.9%, while services dropped 2.6%.
The progress is largely attributed to the Olympic Games which is estimated to have added 0.2 percentage points to GDP.
In the second quarter, Britain posted 0.4% drop as the sharp austerity measures continued to weigh on consume spending, yet in the third quarter the economy started to show some signs of improvement.
Despite the rebound in the third quarter the economy is predicted to fall back in the coming quarters as the pick up is largely an artefact of special events, most notably the Olympic Games that was hosted by London from July 27 to August 12.
BoE King said this month that GDP will continue in a zig-zag pattern as output is likely to fall sharply in the fourth quarter since the robust 1% growth was underpinned by temporary factors.
His main conclusion is that “we face the rather unappealing combination of a subdued recovery with inflation remaining above target for a while.”
The BOE quarterly inflation report released in November stated that the risks from the euro area debt crisis which remains to be the greatest threat to the U.K. recovery are heightening, referring that growth may be "weaker for longer," where the bank’s report revised down growth for next year to 1%.
Taking into consideration all uncertainties, "the economy is likely to see a sustained, but slow, recovery over the next three years," the report said.
The services sector eased expansion in October to 50.6, the lowest level in almost two years, from 52.2 in September, while manufacturing sector fell to 47.5 from a downwardly revised 48.1 in September.
On Dec.5, more specifically in the autumn statement delivered by Chancellor of the Exchequer, he will give an outlook about the economy while may cut growth prospects and announce an additional year to 2018 to reach deficit target.
However, the BOE refrained from adding to its asset purchases, keeping at 375 billion pounds, whilst left its borrowing cost unchanged at 0.50% this month.
Minutes of the decision did not show a unanimous vote to holding APF as MPC member David Miles preferred to increase the size of asset purchases by a further 25 billion pounds to a total of 400 billion pounds.
As of 09:45 GMT, the sterling pound inched down versus the U.S. dollar to trade around 1.6025 after touching a high of 1.6050 and a low of 1.6014.