UK growth downgraded ahead of QE decision

The economy grew by just 0.1% in the second quarter, rather than the 0.2% previously estimated, according to the latest figures from the Office for National Statistics (ONS).

First quarter growth was also revised down from 0.5% to 0.4%, highlighting the slowdown that many are predicting could lead into a double-dip recession.

However, according to the Markit/CIPS purchasing managers' index (PMI), activity in the UK manufacturing sector is on the increase.

The PMI rose from a revised figure of 49.4 in August to 51.1 in September, contrary to economist expectations.

News of the UK's anaemic growth comes ahead of tomorrow's decision by the Bank of England's Monetary Policy Committee (MPC) on whether to alter interest rates or increase asset purchase programme.

The asset purchase scheme - also know as quantitative easing (QE) - has already pumped £200bn into the economy to combat the recession, although it has been held at that level since the last £25bn injection in November 2009.

There has been much speculation that the MPC will restart its money printing programme to help boost the UK's increasing fragile economic recovery. The announcement on interest rates and QE is due at midday tomorrow.