UPDATE 1-Hudson Highland posts Q2 loss, declines to give Q3 view

* Q2 shr loss 68 cents vs EPS 19 cents yr-ago

* Q2 rev $173.8 mln vs $303.1 mln yr-ago

* Says will not provide Q3 outlook

July 29 (Reuters) - Hudson Highland Group Inc HHGP.O posted a quarterly loss as the weak economy continued to hurt demand for its recruitment services, and the staffing services provider said it will not provide an outlook for the third quarter due to low visibility.

The company reported a second-quarter loss of $17.8 million, or 68 cents a share, compared with a profit of $5 million, or 19 cents a share, a year ago.

Loss from continuing operations was $15.5 million, or 59 cents a share. Revenue fell 42.6 percent to $173.8 million.

Analysts on average expected a loss of 31 cents a share, before items, on revenue of $163.2 million, according to Reuters Estimates.

Shares of the New York-based company closed up 12 cents at $2.11 Wednesday on Nasdaq. (Reporting by Eric Yep in Bangalore; Editing by Deepak Kannan)