Profits at British companies are growing at their fastest pace in nearly 13 years, while wages of ordinary workers are rising at their slowest pace since 2002, according to data from the Office for National Statistics.

The statistics show that profits increased by 16% in the second quarter of the year compared with a year earlier. That was the best figure since the final quarter of 1994. However, it revealed that wages rose by a meagre 3.6%, the worst pace of growth since the first quarter of 2002.

IT showed that profits are strong across the world as a result of the longest period of global growth for several decades, leaving firms in good shape to weather the current problems in financial markets.

The GDP figures also showed that economic growth was 0.8% in the second quarter from the first, and 3% up year-on-year.