Forexpros – The U.K. economy grew broadly in line with market expectations in the second quarter of 2011, preliminary official data showed on Tuesday.

In a report, the Office for National Statistics said gross domestic product increased in line with expectations by a seasonally adjusted 0.2% in the second quarter, after rising by 0.5% in the preceding quarter.

Year-over-year, GDP grew at an annualized rate of 0.7% in the second quarter, falling short of expectations for a 0.8% gain. The U.K. economy grew at an annualized rate of 1.6% in the preceding quarter.

Total services output increased by 0.5% in the second quarter compared with an increase of 0.9% in the previous quarter.

The largest contribution to the growth in this quarter was from business services and finance. Business services and finance increased by 0.7%, compared with an increase of 0.4% in the previous quarter.

Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD rising 0.82% to trade at a six-week high of 1.6409.

Meanwhile, European stock markets were mixed. The FTSE 100 edged 0.2% higher, the EURO STOXX 50 added 0.3%, France’s CAC 40 shed 0.1%, while Germany’s DAX rose 0.25%.

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