Without the Queen’s Diamond Jubilee bank holiday, the UK would have emerged from recession, according to the National Institute for Economic and Social Research (NIESR).
The NIESR found that the Jubilee wiped 0.4% off growth during the second quarter, hitting industrial production and private services.
In Q2 of 2012 GDP fell by 0.2%, following a 0.3% decline in the previous period.
Commenting on the figures, Simon Kirby, senior research fellow at NIESR said: said Simon Kirby, senior research fellow at NIESR. “My overall view of the economy is a continuation of this flat trend that has persisted for around 24 months.”
Later this month the Office of National Statistics will publish the first official Q2 GDP estimates.
NIESR believe that the economy should fare better over the summer as the economy benefits from Olympic ticket sales and related economic activity, as well as a rebound from the Jubilee losses.
Mr Kirby added: “We should expect a bounce-back in the third quarter. There is no permanent loss of output, it’s temporary,”