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Daily Mirror
Daily Mirror
Business
James Andrews

Britain now 'perilously close' to recession as Brexit uncertainty reigns

There's good news - sort of - with official figures showing that in July the economy grew a tiny amount.

According to the Office for National Statistics, Britain was 0.3% more productive than in the same month the year before.

Construction, manufacturing and the all-important services sectors all grew, although agriculture fell. 

Thanks to this growth it means the UK economy produced exactly the same amount as the year before over three months.

But while 0% growth isn't healthy, it's at least better than the three months before - when the economy shrank.

It also means, if it can hold at 0% or improve, we might dodge a new recession.

0 growth isn't negative growth (Getty)

Financial Markets Online director Samuel Fuller said: "Seldom has stagnation seemed like such an achievement."

He added: "As a result, the jury remains out on whether the UK is about to enter a recession. The prospect is perilously close but not yet inevitable."

But the latest figures only go up until July - before the current round of political chaos truly began.

Howard Archer, chief economic adviser at the EY Item Club, said: "Disappointing survey evidence for August relating to manufacturing, construction and services activity as well as retail sales suggests that the economy is currently finding life challenging as it is hampered by serious uncertainties relating to Brexit, the domestic political situation and the global economy."

Fuller concluded: "While the idea of Boris Johnson being sent as Parliament’s errand boy to Brussels to ask for a Brexit extension may delight Remainers, the threat of a chaotic, last-minute no-deal exit remains very real."

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