Think tank projects 0.7% GDP growth for Britain in the second quarter

Britain's gross domestic product (GDP) is estimated to have grown by 0.7 percent in the second quarter of 2015 compared with that of the first quarter of 2015, said a British economic think-tank on Tuesday.

The latest monthly estimate of GDP is better than the 0.6 percent growth in the three months ending in May 2015, implying that the economy has expanded by 2.7 percent in the last 12 months, said the National Institute of Economic and Social Research (NIESR), which is based in London.

"The robust rate of growth exceeds that of the economy's potential over the same period, and so suggests spare capacity continues to be absorbed," said NIESR.

"Consistent with this, we expect the Bank of England to begin increasing Bank Rate in early 2016, most likely coinciding with the February Inflation Report," said the think tank.

On the same day, data from the Office for National Statistics (ONS) showed that British industrial output increased by 0.4 percent on the month-on-month basis, better than the market estimation consensus of a minus 0.2 percent growth.

The ONS will release its first estimate of Britain's GDP of the second quarter on July 28.