By Marcus Leach
Official data has shown that the UK economy contracted for a third straight quarter, meaning the economy is still in recession.
Data from the Office for National Statistics (ONS) has shown that the output of the UK (GDP) shrank by 0.7% between April and June.
This is a much larger-than-expected fall and follows a 0.3% drop in the first three months of the year.
The figure is a first estimate and could be revised in the coming months.
"It's official. The UK economy is in tatters. Confirmation of a third quarter of contraction was expected but few expected it to be this bad. This is a bleak day for the British economy," Glenn Uniacke, senior dealer at the foreign exchange specialists Moneycorp, said.
"The UK, like most other nations, has too much debt, no growth plan and, with the Eurozone crisis, is operating against a brutal economic backdrop.
"The Diamond Jubilee and dire weather will have contributed to this dreadful figure but they are by no means the only factors.
"The issues facing the UK economy are far more fundamental and the construction sector, in particular, is on the verge of collapse.
"This latest contraction means we are still below our 2007 peak GDP, making it the longest decline in recent history. Unfortunately, there's no obvious end in sight to the country's economic woes.
"With the UK’s clearly deteriorating outlook we will see renewed pressure on the Chancellor and the Bank of England. The UK economy needs direction but it feels rudderless.
"While the Pound took a hit in the aftermath of this data, the Euro remains in an even darker place and we expect Sterling's momentum in relation to the single currency to continue in the medium term.
"The UK is in a very difficult position, but the Eurozone is arguably at death's door."
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