Recovery on Horizon as Economy Boosted 0.6% by Service Sector

Britain's economy grew by 0.6% in the three months to May as the amble towards a conclusive recovery from the financial crisis continues.

The National Institute for Economic and Social Research (NIESR) made the prediction in its monthly GDP forecast.

"Our estimates suggest that both the production and private services sectors provided significant positive contributions to GDP growth in the recent three month period," said the NIESR.

Several indicators from the UK economy suggest it is gathering momentum after a 0.3% decline in the final quarter of 2012 raised the prospect on an unprecedented triple-dip recession. The economy then grew by 0.3% in the opening three months of the year.

Private industry data from the powerhouse services sector, which accounts for around three quarters of the economy, is beating expectations.

The UK service sector Purchasing Managers Index (PMI), compiled by research Markit and the Chartered Institute of Purchasing & Supply, defied forecasts in May to hit 54.9, up from the previous month's 52.9.

Both other PMI surveys, for the troubled construction and manufacturing sectors, also outshone expectations to produce positive numbers in May - coming in at 50.8 and 51.3 respectively.

Taken together, if this level of growth is sustained into June then Markit predicts 0.5% GDP growth in the second quarter, following a 0.3% expansion in the first three months when the country dodged an unprecedented triple-dip recession.

Most forecasters expect the UK economy to grow by between 0.7% and 0.9% in 2013.