Worse than expected GDP figures

THE UK economy has suffered negative growth for three quarters in a row, according to new figures.

GDP contracted by 0.7% in the second quarter of the year, confirming the UK remains in recession.

The contraction was significantly worse than the consensus among analysts which had predicted a 0.2% fall.

However, the Office for National Statistics warned the extra bank holiday and the weather could have skewed the figures and the underlying performance of the economy could have been better.

The figure will reignite the debate over whether the Government is doing enough to stimulate growth.

Construction sector output shrank by 5.2% in the second quarter, compared to production industries which fell by 1.3% and services by 0.1%.