The UK narrowly escaped a double-dip recession by posting slight growth in the second quarter of the year, according to the latest monthly GDP estimate from NIESR.
The National Institute of Economic and Social Research estimates GDP grew by 0.1% in the three months to May, following a 0.1% contraction in the three months to April.
The figure is at odds with the Office for National Statistics’ second estimate for the period, which said the UK economy shrank by 0.2% in the first quarter of the year and 0.3% in the second quarter, a technical recession.
In its second estimate, the ONS revised down its growth figure from a 0.2% to a 0.3% contraction.
The UK was last in recession in 2009 and, despite a strong 2010, has failed to recover as quickly as many had hoped.
NIESR said: “The UK economy has ceased to contract, but economic activity remains very weak. With the economy stagnant, the negative output gap is likely to widen further.
"We expect the UK economy to remain broadly ‘flat’ over the next six months. While significant downside risks persist, we expect economic recovery to begin to take hold in 2013.”
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