UK economy avoids recession but GDP falls

The UK’s GDP has fallen by 0.1%, though the economy is not expected to enter a recession.

This is due to a 0.3% growth in the economy in the three months which was put down to a strong service industry in June and July, following a period of largely flat growth in the previous three months.

A report by the Office of National Statistics published on Thursday morning said that the film and TV industry was the main reason for growth.

However, James Smith, an economist at ING has said that the overall direction of the economy remains negative despite the 0.3% growth in the economy.

“The broader economic trend remains pretty lacklustre. Much of the weakness is centred on investment,” Smith said.

“Uncertainty surrounding Brexit and global economic activity means firms are reluctant to expand, while preparations for a possible ‘no deal’ exit on October 31 will also be drawing time/resources away from potential investment projects.”

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