In quotes: UK economic growth stalls

A furniture store in York advertises its closing down sale

The outlook for the economy is deteriorating

UK economic growth ground to a halt between April and June, according to the latest official data.

The Office for National Statistics said economic growth was unchanged in the second quarter from the first, revising an earlier estimate of 0.2% growth.

The government, economists and business groups have been giving their reactions.

TREASURY

"The UK, like other economies, is seeing the consequences of globally high commodity prices, as well as the uncertainty in the credit markets.

The Government's priority is to guide Britain through these challenging times, while also supporting those hit hardest as a result of these global factors."

DAVID KERN, BRITISH CHAMBERS OF COMMERCE

"The revised GDP figures confirm that the Office of National Statistics' original second quarter estimate was too optimistic. The messages signalled by our Quarterly Survey were more realistic. Today's figures show that manufacturing and construction declined in the second quarter, and total GDP stagnated.

Given the heightened threats of UK recession it is vital that the Monetary Policy Committee starts cutting interest rates in October or November, as soon as it is clear that CPI inflation has peaked."

RICHARD SNOOK, CENTRE FOR ECONOMIC AND BUSINESS RESEARCH

"The second estimate of UK economic growth in the second quarter of 2008 by the Office for National Statistics shows that the economy registered no growth from the first quarter.

This is a substantial downward revision from the previous estimate of 0.2% growth in the quarter. Expectations had been divided between the overall figure remaining unchanged, or being downwardly revised to 0.1%.

The result will therefore be a shock to the markets and is likely to push sterling and the FTSE lower and bond prices higher in trading today. Year-on year economic growth is now 1.4 per cent, the weakest since 1992."

JONATHAN LOYNES, CAPITAL ECONOMICS

"We've entered a period of quite acute weakness that's unlikely to be short-lived.

There's a good chance we're facing at least two consecutive quarters of negative growth."

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