The UK leading indicator of overall economic activity rose to 101.4 in July from 100.5 the previous month, its highest level since June 2002, according to economic and financial research group NTC. "Latest readings suggest that the performance of the UK economy is likely to improve during the first months of 2004, following a period of slowing growth in 2003," the NTC said. The rise in the index last month was driven by improving consumer confidence, non-financial firms' stock market performance, and new car registrations. Figures released by National Statistics earlier today shows that UK GDP rose a sluggish 0.3pc in the second quarter of 2003 from the previous quarter, on a seasonally-adjusted basis. This is unchanged from the preliminary estimate and in line with the consensus forecast of city economists. On a year-on-year basis, UK GDP rose 1.8pc in Q2 2003 - again unchanged from the initial estimate and in line with expectations. In Q1 2003, GDP rose 0.1pc from the previous quarter, and was up 2.1pc year-on-year. The figures are adjusted for inflation but do not include the VAT fraud related revisions in the latest run of trade data. //www.fxcentre.com