The Chancellor has hailed today's figures as a major milestone and there is a lot of optimism, but is it being felt by ordinary people?
The IMF has again raised its forecasts for Britain's GDP growth - just a year after warning that the Chancellor was "playing with fire".
Chancellor George Osborne told ITV News that the UK is on the "path to prosperity" but critics claim people aren't feeling the benefit.
Chancellor George Osborne told ITV News that the UK is on the "path to prosperity" after figures released today showed that the economy grew by 0.8% between July and September.
"Of course, we're emerging from a very difficult recession which hit some parts of the country particularly hard but what I see happening around me is businesses growing, jobs being created.
"That enables us to, where we can, help people with lower taxes and help people with income tax across the whole of the country".
Chancellor George Osborne told ITV News the economic "recovery is gaining momentum" but admitted there is "more to be done".
In an interview with ITV News' Economics Editor Richard Edgar, Mr Osborne said: "Lots of work remains but I think there's real momentum, of course we are emerging from a really difficult recession which hit some parts of the country very hard...I'm the first to say that there's more to be done.
"The recovery is in the early stages but the numbers we have today show that the recovery is gaining momentum.
"If Britain is growing then the finances of Britain's families will start to grow."
This is the strongest quarter in three years but the year so far is weak. Services are making the biggest contribution but construction growing apace.
Utilities are down 6.8%, dragging overall production but manufacturing within that is up 0.9%.
The economy is still 2.5% below the pre-recession peak - so we have some way to go to catch the US and Germany.
It is the third quarter of expansion in a row for the first time since 2010 but the question is, can this pace be sustained?
After three damaging years of flatlining, it's both welcome and long overdue that our economy is growing again.
But for millions of people across the country still seeing prices rising faster than their wages this is no recovery at all.
– Ed Balls, Shadow Chancellor
Working people are on average over £1500 a year worse off since David Cameron came to office, yet very high earners have enjoyed a huge tax cut. And on the cost of living, growth and the deficit, this Government have failed every test they set themselves in 2010.
We now need action to secure a strong, balanced and sustainable recovery that works for the many, not just a few at the top. And simply to catch up all the lost ground since 2010 we would need 1.5 per cent growth in every quarter between now and the election.
The UK economy grew at its fastest pace for three years in the third quarter as GDP rose by 0.8%.
Here is a closer look at today's figures:
- It was the third successive period of improving output.
- The 0.8% GDP rise is the best performance since the second quarter of 2010.
- The figures saw all sectors of the economy grow, including a 2.5% surge in construction - a sector bolstered by the Help to Buy initiative.
- Overall GDP was 1.5% ahead of the same period last year.
- However, the economy remains 2.5% off its pre-recession peak at the start of 2008 and construction remains 12.5% of its pre-crisis peak.
- Production grew by 0.5% and manufacturing by 0.9%.
Graphs showing Britain's economic outlook have been released by the Treasury.
A Treasury spokesperson said the economic recovery "now has real momentum".
– HM Treasury spokesperson
Today's GDP figures show that Britain's hard work is paying off and the country is on the path to prosperity.
Many risks remain, but thanks to our economic plan the recovery now has real momentum.
All parts of the economy are growing, the deficit is falling and jobs are being created - and that's the only sustainable way to raise living standards for hardworking families.
0.8% growth. This shows that Britain's hard work is paying off & the country is on the path to prosperity.