UK economy shrinks for first time in 7 years amid Brexit chaos, sparks recession fears
- The data, which was worse than market expectations for zero growth, sent the pound sliding against the euro
- Another contraction in the current third quarter would put the country in official recession
Gross domestic product (GDP) fell 0.2 per cent in the April-June period, the first time the economy has contracted in almost seven years, the Office for National Statistics (ONS) said in a statement.
The data, which was worse than market expectations for zero growth, sent the pound sliding against the euro and dollar.
The latest reading contrasted with 0.5-per cent expansion in the first quarter, when activity was boosted by companies stockpiling ahead of Brexit.
Economic activity was buoyed in the first three months because Britain had initially been scheduled to leave the European Union at the end of March.
“GDP contracted in the second quarter for the first time since 2012 after robust growth in the first quarter,” said Rob Kent Smith, head of GDP at the ONS.