The UK economy showed strong signs of recovery in the second quarter of 2014, recording growth of 0.9%, according to official statistics.

The Office for National Statistics revealed that the growth was 0.8% more than initial estimates, with UK gross domestic product up 3.2% in Q2, compared to the same period a year ago.

Despite the positivity, the ONS did revise its growth figure for Q1 of this year, reporting growth of 0.7% instead of 0.8%.

The second quarter of this year saw the strongest growth since 2010, while the UK economy passed its pre-crisis peaks in Q3 2013.

These latest figures suggest that the economy performed a great deal stronger than originally predicted throughout the financial crisis.

Growth in the service and construction sectors

Business confidence is up as a result and further growth is expected in the remainder of the year, while SMEs are at the forefront of the recovery.

The services industry saw growth of 1.1% between April and June, according to the ONS while the construction sector also increased by 0.7%.

With Bank of England estimates suggesting growth of 3.5% for 2014 and additional growth next year, the signs are that the economy is on a solid footing.

Business investment is a key driver behind the growth, while consumer spending also contributes heavily to the growth.

The need for financial care

Care is required in this regard though, as wage growth in the UK remains low meaning many households need to carefully manage their finances.

Household disposable income did increase in the second quarter though, rising by 2.2% after a decline of 0.6% in Q1.

However, the previous quarters must also be taken into account as household finances have been hit hard by the various pressures applied upon them in the last few years.

While the latest figures do not heavily impact upon the UK’s growth outlook, they are suggestive of the widespread positivity currently found across the country.

Prime Minister David Cameron also suggested on Twitter that the growth would mean “more opportunities for hardworking people”.

Options for managing finances

In instances where disposable income is not available in abundance, careful management is required to ensure that overspending does not occur.

One tool for this situation could be to use a prepaid card, which is loaded with any funds that can be freely spent.

Since only the funds on the card can be spent, any other funding would be left untouched, meaning it is possible to carefully budget what funds are available.

Unlike credit and debit cards, prepaid cards are not directly linked to a bank account making fraudulent activity a lot more difficult.