UPDATE 1-UK economy shows signs of recovery ahead of Carney's start

Fri Jun 28, 2013 8:22am EDT
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* April services output grows 0.2 pct m/m, up 2 pct on year

* Economists say data points to solid Q2 GDP growth

* Consumer morale and house prices also strong

By William Schomberg and David Milliken

LONDON, June 28 (Reuters) - Britain's slow economic recovery is picking up a bit more speed, data showed on Friday, just in time for the arrival next week of the country's next central bank chief Mark Carney.

The services sector, which accounts for about three quarters of British gross domestic product, grew slightly more than expected in April.

Consumer confidence and annual house price growth also increased, both showing their strongest readings in over two years.

Some economists said overall growth in the second quarter could turn out to be better than the 0.5 percent predicted by the Bank of England.

Alan Clarke, an economist at Scotiabank, said growth could come in at around 0.7 percent, or possibly as high as 1 percent, though others said the bigger question was whether it would prove sustainable.   Continued...