UK economy powers ahead by 0.7%

Accelerating GDP growth rate fans talk of interest rate rise but a 0.3% dip in manufacturing prompts warnings of two-speed economy

Britain's economic growth bounced back in the second quarter of the year, fanning the debate about the timing of the first rise in interest rates since the financial crisis.

Growth in the three months to June stood at 0.7%, according to official figures, following a below-par rise of 0.4% in the first quarter. The second-quarter number was in line with City expectations, but the services sector fuelled the growth as manufacturing declined, prompting warnings from economists that the recovery is being powered by a two-speed economy.

Related: UK growth accelerates to 0.7%, but manufacturing shrinks - live updates

GDP growth 0.7%. Shows Britain motoring ahead with economy producing as much per head as ever before. We must stay on road we've set out on