It wasn't a huge surprise, but GDP fell by 0.7% in the second quarter of the year. However, analysts expected a fall of just 0.2% Extra bank holidays are said to have played their part and it is only an estimate at this time. This will put pressure on the Bank of England to increase the measures to stimulate the economy known as quantitative easing. The coalition will also be facing pressure to find ways to stimulate growth which seem to be very elusive at the moment
The GDP figures have been widely criticised as being misleading and not accurate. Unemployment has fallen and business confidence has held up reasonably well. What is more the insolvency statistics are showing an improving picture. However, the general consensus is that the economy is flat.