The UK's economy grew by half a per cent during the first three months of the year, according to the Office for National Statistics.
The organisation confirmed the growth as part of its third release of data covering the first quarter of 2011.
But despite the increase in Britain's gross domestic product, real household disposable income fell by 0.8 per cent during the period and as a result, household expenditure fell by 0.6 per cent. In a bid to help out struggling consumers, many high street retailers have been using displays to advertise discounts and summer sales.
Speaking to the BBC, Philip Shaw, an analyst at Investec, said he believed the news would result in the Bank of England keeping interest rates at 0.5 per cent.
Mr Shaw said it is important for the UK economy that the unstable economic situation in Greece is managed properly and that economic growth picks up in America.
