Italy's economy has shown signs of a recovery, with stronger consumer spending pulling it out of recession.

Gross domestic product (GDP) grew by 0.7% in the three months to the end of June from the previous quarter, statistical office Istat said.

The economy contracted in the previous two quarters and the government was under pressure to turn things around.

Analysts said that record oil prices were likely to hamper any further growth in the second half of the year.

"For now Italy is out of recession," said Silvia Pepino, an analyst at JP Morgan. "But there are risks from the recent oil price."