UK economy in midst of post-Brexit slowdown, says study
The UK economy is showing signs of further slowdown in the wake of the Brexit vote, a report by an influential think tank has claimed.
The National Institute of Economic and Social Research (NIESR) estimated that gross domestic product (GDP) output grew by 0.3% in the three months to August. That compares with GDP growth of 0.4% in the three months to July.
The chance of a technical recession before the end of 2017 "remains significantly elevated", the report said.
The probability of recession, indicated by two consecutive quarters of negative growth, currently stands at 50%, according to the NIESR.
A recent blog post by the think thank said the UK's annual growth rate is expected to fall to 1% in 2017 from 1.7% this year.
The study came as Bank of England governor Mark Carney denied allegations he "over-egged" Brexit warnings and insisted he was "absolutely serene" about policy-maker actions taken surrounding the referendum.
In a hearing with MPs on the Treasury Select Committee, Mr Carney denied accusations that the bank had exaggerated the economic hit ahead of the vote and "encouraged an overreaction after it".