The UK economy picked up pace in the second quarter of this year following a robust performance from industrial production and the services sector.

The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.6% in its initial estimate for the second quarter of 2016, up from 0.4% in the first quarter.

The upward impact on growth was driven by a strong performance from industrial production, which grew by 2.1% compared with a fall of 0.2% in the quarter before and matched figures last seen in the third quarter of 1999.

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Britain's dominant services sector grew by 0.5% over the period, but this was offset by falls in construction and agriculture, which fell 0.4% and 1% respectively.

It comes as the index for the services sector, which accounts for more than 78% of the UK economy, showed that output slipped by 0.1% between April and May, down from a 0.6% rise the month before.

The rise in GDP for the second quarter came in above economists expectations of 0.5%, with many predicting the economy would maintain momentum in the run-up to Britain's referendum on the European Union thanks to a "resilient" performance from manufacturing and strong retail figures.

Output for the manufacturing industry came in at a higher-than-expected fall of 0.5% in May, dropping down from April's rise of 2.4%, but remaining ahead of a predicted slide of 1.1%.

Chancellor Philip Hammond said: "Today's GDP figures show that the fundamentals of the British economy are strong. In the second quarter of this year our economy grew by 0.6% - faster than was expected. Indeed, we saw the strongest quarterly rise in production for nearly 20 years, so it is clear we enter our negotiations to leave the EU from a position of economic strength.

"Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and, along with the Bank of England, this Government will take whatever action is necessary to support our economy and maintain business and consumer confidence."

However, the latest economic data since the referendum result suggest dark clouds are now gathering over the UK economy, with Friday's flash PMI survey showing economic growth had slumped at its fastest rate since the financial crisis.

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Companies also revealed a gloomy outlook for trade in the latest CBI Industrial Trends Survey on Monday, with business optimism deteriorating at its fastest rate since January 2009.

The sharp post-referendum contraction caused Bank of England policymaker Martin Weale to shift his stance on Wednesday in favour of measures to shore up UK economic growth.

Mr Weale, a member of the Bank's Monetary Policy Committee (MPC), is now eyeing an interest rate cut or an expansion in quantitative easing next week in the wake of Friday's PMI survey, which showed falling output and orders for the first time since 2012.

It came after he questioned last week whether rates would need to be trimmed in August, saying the Bank was "not a nurse to markets" and there were no signs that consumers or businesses were "panic-struck" following the Brexit vote.

The MPC will vote on whether or not to slash the cost of borrowing on Thursday August 4, when it will also deliver its inflation report.

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Interest rates were kept on hold again this month, but Bank governor Mark Carney has signalled that, in his personal view, a rate cut could come over the summer.