The UK economy expanded at a faster-than-expected rate of 0.8 per cent in the third quarter of 2010, contrary to widespread concerns of a sharp slowdown.
The encouraging figure comes at a time when Prime Minister David Cameron-led government is resorting to massive cost-cutting measures to boost the country's financial health.
Analysts were expecting the national economy to grow at around 0.4 per cent in the September quarter.
"Gross Domestic Product (GDP) increased 0.8 per cent in the third quarter of 2010, compared to an increase of 1.2 per cent in the previous quarter," the UK's Office for National Statistics said in a statement on Tuesday.
The good showing primarily came on the back of strong growth in the country's services sector.
"Total services output rose 0.6 per cent in the third quarter, compared with a rise of 0.6 per cent in the previous quarter.
"The largest contribution to the growth in this quarter was from business services and finance and government and other services," the statement noted.
Total production output and construction output climbed 0.6 per cent and 4 per cent, respectively, in the third quarter.
One of the countries worst-hit by the financial crisis in 2008-09, UK has been witnessing fragile economic growth in recent quarters. There were also increased fears the country would need more stimulus measures to bolster the economic recovery.