British economic growth got back on track in the second quarter of 2015, after a pick-up in the country's dominant services sector. As Ciara Lee reports one of the biggest surges in oil and gas production in a generation also helped.
He's on a four-day mission to South-East Asia, hoping to snare lucrative business deals. British Prime Minister David Cameron's first stop was Indonesia. Hoping to forge closer ties, he announced British investment could double on infrastructure projects. And Cameron has reason for a spring in his step - UK GDP grew 0.7 percent in the second quarter. It's partly down to one of the biggest surges in oil and gas production in a generation. But mostly thanks to a pick-up in the country's services sector. Seven Investment Management's Justin Urquhart Stewart. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, SEVEN INVESTMENT MANAGEMENT, JUSTIN URQUHART STEWART, SAYING: "It is about two thirds of our economy covering areas which we are really rather good at. Whether it's dealing with finance, accounting, or legal issues. We are quite often global leaders in this area and they are key for our exports." Second quarter output was 2.6 percent higher than a year earlier with households bolstered by higher wages and temporarily low inflation. And there are signs that firms are stepping up investment as the recovery matures. But there are still areas for improvement. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, SEVEN INVESTMENT MANAGEMENT, JUSTIN URQUHART STEWART, SAYING: "Construction is a crucial issue, not only in terms of large infrastructure projects areas, now of course we have things like Crossrail coming through, but others having been coming through as fast. Whether it is in terms of railways or having another airport. Heaven forbid, we're so bad at strategic planning in this country compared to say someone like the Romans who would actually build a port capable of managing an empire, and we can't even get one runway." Demand from the euro zone has also remained weak, weighing on manufacturers. One new industry survey is predicting the weakest outlook for exporters in nearly four years.