Consumer spending remained strong during the first quarter of the year

Gross domestic product (GDP) grew at 0.7% during the period from the previous quarter, the Office for National Statistics (ONS) said.

Although this figure was unchanged from previous estimates, revisions to earlier data pushed the annual growth rate higher to 3% from 2.9%.

The strong growth will reinforce expectations of a rate rise next week.

The Treasury has estimated that the long-term sustainable growth rate of the UK economy is about 2.5%.

Speaking to the Treasury Select Committee on Thursday, Bank of England governor Mervyn King said that inflationary risks were "still on the upside" despite "tentative signals" of slowing consumer spending.

The Bank of England has raised interest rates four times in the past year to 5.5%, but some analysts expect rates to reach 6% by the end of the year.

The ONS figures showed that the savings ratio - the amount of income saved by individuals - was down to 2.1%, the lowest reading since 1960, as consumer spending remained strong.

Meanwhile, the ONS's revised national accounts showed that GDP in 2006 was �8.3bn higher than previously thought, although growth was unchanged at 2.8%.