Britain’s economy contracted by 0.2% in July, the first full month after the UK’s vote to leave the European Union, according to the latest numbers from the National Institute of Economic and Social Research (NIESR).
The NIESR’s monthly economic data shows that on a quarterly basis, growth in the UK was 0.3% in the three months up to the end of July, compared with 0.6% growth in the three months to the end of June.
That fall was driven by the contraction in July, which saw economic activity shrink as a result of the economic uncertainty and trepidation brought about by the Brexit vote.
Speaking about the numbers, James Warren, a Research Fellow at the NIESR said:
“We estimate that in the three months to July the UK economy grew by 0.3 per cent, a marked economic slowdown. The month on month profile, suggests that the third quarter has got off to a weak start, with output declining in July. Our estimates suggest that there is around an evens chance of a technical recession by the end of 2017.”