National Institute of Economic and Social Research (NIESR) reported its estimates revealed the UK's economy is on course to contract by 0.2 percent in the second quarter.

The latest data from ONS showed the UK economy expanded by 0.3 percent in the three months to April, which was weaker than the 0.4 percent growth rate that NIESR forecast last month for the same period.   

The slowdown in the three-month growth rate was associated with a 0.4 percent drop in GDP in April, driven by declines in the production and construction sectors, while output in the service sector was flat in April.

Recent surveys suggest that there has not been a material recovery in output in May, the NIESR said (UK's GDP is estimated to fall 0.1 percent in the three months to May).

Economic contraction of 0.2 percent in the second quarter is expected to be mainly driven by the production and construction sectors, with a small positive contribution from the service sector.