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| Version 0 | Version 1 |
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| UK confirms economy at standstill | UK confirms economy at standstill |
| (about 1 hour later) | |
| The UK economy saw no growth in the second quarter of 2008, while the gap in the current account widened to its highest level in almost a year. | The UK economy saw no growth in the second quarter of 2008, while the gap in the current account widened to its highest level in almost a year. |
| Data from the Office for National Statistics (ONS) showed economic output remained the same as in the first quarter, confirming previous estimates. | |
| Growth was 0% in the second quarter - which was even lower than the 0.3% figure for the first quarter of 2008. | |
| Some analysts think the Bank of England may cut interest rates as a result. | |
| Output was revised up to 1.5% from a previous estimate of 1.4% year-on-year. | |
| The new data takes into account improved methodology and was revised back to 1961. This adds £19.5bn to the 2007 gross domestic product (GDP) figures. | |
| Gloomy forecast | |
| The quarterly figures were the worst for sixteen years, and several analysts maintained a downbeat forecast for the UK economy. | |
| "Overall, not much cheer here. We continue to think that the UK economy is poised for a recession and a prolonged period of weak activity as the excesses of the last decade unwind dramatically," said Paul Dales, an analyst at Capital Economics. | |
| Separately, balance of payments information showed there was a deficit of some £11bn in the current account in the second quarter. | |
| The current account deficit - which is the difference between imports and exports - widened by more than had been expected to £10.98bn, compared with £5.49bn in the first quarter. | |
| This is the biggest the deficit has been since the third quarter of 2007 and it equates to 3% of GDP. | |
| The increase has been due to increased interest payments from UK securities dealers and lower losses recorded by foreign banks operating in Britain. | |
| Lena Komileva, an analyst at Tullett Prebon, said the figures showed the UK's weak spot. | |
| "The negative surprise on the current account highlights the vulnerability of the UK economy to external flows. At a time of a global drain of financial liquidity, this is worrying." |