UK economy grows faster than expected

GDP increased 0.7% over the three-month period, exceeding the 0.5% market forecast and the previous 0.4% reading. 

Annual GDP growth reached 2.1%, above expectations of 1.7% and the previous 1.6%.

Monthly GDP rose 0.1%, defying expectations for a 0.1% contraction, although growth slowed from the previous 0.4% increase. Manufacturing production climbed 1.2% month over month, beating forecasts for no change and the previous 0.9% rise. 

Stronger growth and manufacturing data could support the British pound while encouraging a more cautious outlook for Bank of England (BoE) interest-rate cuts.