"The [U.K.] economy faces powerful and persistent headwinds"
- Michael Saunders, an economist at Citigroup Inc.
The U.K economy contracted less than previously thought, official figures showed. Gross domestic product shrunk 0.5 per cent in the second quarter, said the Office for National Statistics, up from a previous estimate of a contraction of 0.7 per cent.
"The big picture is that the economy has been roughly flat over the last couple of years and we expect it is unlikely to improve significantly during the rest of this year or 2013," said Michael Saunders, an economist at Citigroup Inc. in London.
"The economy faces powerful and persistent headwinds. With prolonged stagnation in prospect, we believe the economy needs more stimulus."
U.K. stocks were little changed on Friday. The FTSE 100 Index was unchanged at 5,776.60. The broader FTSE All-Share Index slid to 3,002.62.
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