By Marcus Leach
The Office for National Statistics (ONS) have revised their original figures to show that the UK economy shrank less than previously thought between April and June.
With construction output higher than the ONS had previously estimated the revised figures show that the economy contracted by 0.5% during the last quarter, less than the 0.7% that was originally announced last month.
The original estimate of a 0.7% contraction, published in July, was greeted with some scepticism by a number of experts and by some industries that claimed they had seen little sign of such a serious economic downturn.
Despite the revision of the data Graeme Leach, chief economist at the Institute of Directors, said the same core problems remain.
“The revised GDP figures show that the economy is flatlining," he said.
"Services, which dominate the economy, declined by 0.1 per cent. Obviously the much sharper fall in manufacturing and construction output is a concern since it's difficult to see where the kick to growth comes from for any sector.
"The core problem is the euro crisis and economic uncertainty. Until that begins to ease the UK economy will bump along the bottom.”
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