By David Milliken and William Schomberg LONDON (Reuters) - British economic growth got back on track in the second quarter but the strength of the pound hurt manufacturers, putting the Bank of England in a tricky spot as it gets closer to raising interest rates. The economy grew by 0.7 percent in the three months to June, the Office for National Statistics said on Tuesday, in line with forecasts and above the long-run average. "Sterling strength has clearly been a key driver behind the re-emergence of the two-speed economy, making life more difficult for export-focused UK manufacturers," Investec economist Victoria Clarke said.
The U.S. services sector expanded at a faster clip in July than June as employment and new business growth accelerated, an industry report showed on Tuesday. Financial firm Markit said its preliminary or "flash" reading of its Purchasing Managers Index for the services sector rose to 55.2 in July from the final 54.8 reading in June, slightly beating the 55 level expected by economists in a Reuters survey. "The sustained strength of economic growth is continuing to feed through to the labor market.