Sterling strengthens after UK growth revised up

(Corrects third paragraph to show growth was revised up from 2.4 pct, not 2.5 pct)

LONDON, June 30 (Reuters) - Sterling extended gains against the euro and recovered some ground against the dollar on Tuesday, after data showed Britain's economy grew more strongly than previously thought in the first quarter.

The economy grew 0.4 percent in the first quarter, the Office for National Statistics said on Tuesday, revising up from an initial estimate of 0.3 percent which the Bank of England and most other economists had thought too gloomy.

The ONS also revised up growth in year-on-year terms to 2.9 from 2.4 percent, a much stronger increase than economists had expected. Households' disposable income, meanwhile, rose at the fastest annual pace since 2001.

Sterling hit an intraday high of $1.5746 after the data, up from $1.5717 before its release. But it quickly retreated to $1.5722, still suffering from comments from the Bank of England's chief economist, who warned against raising interest rates too early on Monday.

Against a broadly weaker euro, sterling extended gains to trade at 70.945 pence, up 0.7 percent on the day.

Britain's FTSE 100 equity index remained down by around 1 percent after the UK GDP numbers were released, while gilts showed little reaction. (Reporting by Jemima Kelly; Additional reporting by Sudip Kar-Gupta; Editing by Anirban Nag)