NIESR: UK economy in the midst of a slowdown
NIESR's monthly estimates of GDP suggest that output grew by 0.3% in the three months ending in August 2016 after growth of 0.4% in the three months ending in July 2016.
"The evidence on the current state of the economy post-referendum is limited, but on balance these data suggest that the UK economy is in the midst of a slowdown."
Given this, NIESR says the probability of a technical recession before the end of 2017 remains "significantly elevated".
Rebecca Piggott, Research Fellow at NIESR, said: “The evidence on the current state of the economy post-referendum is limited, but on balance these data suggest that the UK economy is in the midst of a slowdown. We estimate that in the three months to August the UK economy grew by 0.3%.”
Last month, NIESR forecasts revealed that GDP is expected to grow by 1.7% in 2016, slowing to just 1% in 2017.
The Institute says that GDP is likely to decline by 0.2% in the third quarter of this year and there is "a risk of a further deterioration".
It added that the chance of a recession has increased 'significantly' since its previous forecast, and that there is now "an evens chance of a ‘technical’ recession in the next 18 months".
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Lloyds
Lloyds Banking Group launches £5,000 deposit mortgage
Mortgage Rates
Barclays relaunches sub-4% mortgage rate
FCA
FCA bans and fines director £755,000 for advice and insurance failures
Bank Of England
Bank of England holds interest rates at 3.75% in 8-1 vote
Mortgages
Mortgage affordability at tightest level since 2008: UK Finance
Nationwide
Nationwide cuts mortgage rates by up to 0.36%
