According to the National Institute of Economic and Social Research (NIESR), GDP output grew by 0.1% in the three months to the end of June after growth of 0.5% in the three months to the end of May.
The figures suggest that the UK has not seen any growth in around ten months, as each increase has largely been cancelled out by a contraction in the following months.
NIESR’s report said: “The effects of one-off events in April have depressed the overall quarterly growth rate. However, even accounting for these factors the underlying rate of growth is still likely to be weak.
“These figures do not provide a picture of economic growth that would support a tightening of monetary policy at this juncture.”
NIESR interprets the term ‘recession’ to mean a period when output is falling or receding, while ‘depression’ is a period when output is depressed below its previous peak.
The think-tank said in its report: “Unless output turns down again, the recession is over, while the period of depression is likely to continue for some time.
“We do not expect output to pass its peak in early 2008 until 2013.”
