Economy grew by 0.1 percent in the three months to July, the National Institute of Economic and Social Research said on Wednesday.
That followed growth of 0.2 percent in the three months to June and was the weakest in more than three years, the think-tank said.
It said the pattern of monthly data made it likely that growth would fall further in the three months to August unless there was a clear increase in public sector output.
Surveys of purchasing managers show the services, manufacturing and construction sectors all contracted in July, raising concern Britain's economy may be about to enter its first recession since the early 1990s.
The Bank of England is widely expected to keep interest rates unchanged at 5 percent at the end of its monthly policy meeting on Thursday as grapples with a combination of slowing growth and rising inflation.
"With inflation far above target and rising, there remains a case for an interest rate increase," NIESR said. "On the other hand the recent weakness of the oil price suggests that inflationary concerns may be somewhat less acute than they were last month."
Source: http://uk.biz.yahoo.com/06082008/325/economy-grew-0-1-pct-3mths-july.html
