UK economy is on course to contract by 0.1% in Q2 - NIESR

• NIESR says economy is expected to contract by 0.2% in Q2.
• Says economy expanded by 0.3% in three months to May.

In its latest press release, the UK's National Institue of Economic and Social Research (NIESR) said that the economy was on course to contract by 0.1% in the second quarter of the year. 

The GBP/USD pair's reaction to the NIESR's press release was relatively muted. As of writing, the pair was up 0.08% on the day at 1.2475.

"According to new ONS data published this morning, the UK economy expanded by 0.3 per cent in the three months to May."

"This outturn was higher than the 0.1 per cent that we forecast last month for the same period due to higher than expected electricity production."