– Capital Economics
The economy should reboundin quarter three as the bank holiday effect unwinds and any Olympics boost comes through.
But we still expect the underlying performance of the economy to remain weakand GDP may even contract again in quarter four.
The volume of household spending fell by 0.2% between Q1 and Q2 2012, but grew by 0.2% between Q2 2011 and Q2 2012: http://t.co/b86ITD3k
An initial estimate of a 0.7% contraction shocked the City in July, but smaller than previously thought falls in the production, manufacturing and construction sectors improved the decline to 0.5% last month and now 0.4%.
The UK's double-dip recession is not as deep as previously feared after revised figures showed a smaller contraction in the second quarter of the year.
The Office for National Statistics (ONS) said gross domestic product (GDP) fell 0.4% between April and June in the second upward revision.