'Indian summer' may aid economy woe

The economy failed to grow in the second quarter of 2012 but will enjoy an "Indian summer" as falling inflation helps hard-pressed households, according to a respected forecaster.

The Ernst & Young Item Club believes the extra bank holiday for the Queen's Diamond Jubilee helped keep the economy in its double-dip recession in the last quarter, capping a "dismal" first half in which confidence was hit by the eurozone debt crisis.