Recession watch: Will the economy shrink this year after it grew in July? – City experts look ahead

What’s the view on the UK economy from the City?

(Picture: Canary Wharf Group)

There was a much-needed boost for the mood in the City today, with confirmation that the UK economy grew in July, easing the worst of fears about a potential recession.

The expansion wasn’t big.  At just 0.2%, it was smaller than the 0.3% predicted. But it ended some of the more pessimistic speculation,  which predicted a second consecutive month of contraction after June’s 0.6% decline and would have set the UK on course for full-blown recession.