UK economic output 'now falling'

UK manufacturing output has fallen for five straight months

The output of the UK economy fell 0.2% between June and August, a think tank has calculated, the latest sign that a recession may be imminent.

August's decline came after a 0.1% drop in the three months ending July, according to the National Institute of Economic and Social Research (NIESR).

Last month, the Office for National Statistics (ONS) said the UK economy had not grown in the second quarter.

The UK would be considered in recession after two quarters of decline in a row.

NIESR added that it expects a further fall in economic output in the three months to the end of September, but not for the rate of decline to worsen from August's figure.

Wider recession fears

The NIESR is just the latest body to warn that the UK could be facing recession.

The Organisation for Economic Cooperation and Development said earlier this month that it expects the UK to fall into recession before the end of this year.

The Paris-based think tank predicts that the UK economy will shrink 0.3% in the third quarter, and by 0.4% in the fourth.

Separate ONS data showed that UK manufacturing output declined in July for a fifth straight month, while the CBI business organisation said retail sales in August were the worst since it started compiling the figures 25 years ago.