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Economy hits zero growth

Economy hits zero growth

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The UK economy did not grow between April and June this year, new figures have revealed.

After studying output data, the Office for National Statistics confirmed that the estimated figure of 0.2 per cent growth in the second quarter has been revised down to zero.

While the service sector still expanded by 0.2 per cent, industrial output, retail spending and construction were all down.

The figures may be an indicator that the UK is heading towards recession sooner than expected, which could put a further strain on those dealing with debts incurred by means such as loans.

Minutes of the Bank of England's monetary policy committee (MPC) meeting minutes for August revealed that the body made its deliberations on the basis of the estimated 0.2 per cent figure.

However, the minutes also said a projection of flat growth would see inflation falling in the months ahead, something that could allow the MPC to relieve some of the burden by cutting interest rates.

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