<p class="title">Britain's economy unexpectedly shrank in the second quarter of the year on Brexit turmoil, official data showed Friday, placing the country on the verge of a recession.</p>.<p class="bodytext">Gross domestic product (GDP) fell 0.2 percent 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.</p>.<p class="bodytext">The data, which was worse than market expectations for zero growth, sent the pound sliding against the euro and dollar.</p>.<p class="bodytext">The latest reading contrasted with 0.5-percent expansion in the first quarter when activity was boosted by companies stockpiling ahead of Brexit.</p>.<p class="bodytext">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.</p>.<p class="bodytext">"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.</p>.<p class="bodytext">"Manufacturing output fell back after a strong start to the year, with production brought forward ahead of the UK's original departure date from the EU.</p>.<p class="bodytext">"The construction sector also weakened after a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth at all," he added.</p>.<p class="bodytext">Another contraction in the current third quarter would put Britain in an official recession, ahead of the nation's expected EU withdrawal at the end of October.</p>.<p class="bodytext">British Prime Minister Boris Johnson replaced Theresa May in July after winning the governing Conservatives' leadership contest on a pledge to take Britain out of the bloc with or without a divorce deal on October 31.</p>.<p class="bodytext">"The latest look at the UK economy makes for pretty grim viewing," said XTB analyst David Cheetham.</p>.<p class="bodytext">"Given the growing threat of a no-deal Brexit that looms menacingly overhead, it would not be at all surprising if the current quarter also shows a contraction -- therefore meeting the standard definition of a recession."</p>.<p class="bodytext">The government's official forecaster last month warned that Britain would slide into a year-long recession should it leave the EU without a deal.</p>
<p class="title">Britain's economy unexpectedly shrank in the second quarter of the year on Brexit turmoil, official data showed Friday, placing the country on the verge of a recession.</p>.<p class="bodytext">Gross domestic product (GDP) fell 0.2 percent 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.</p>.<p class="bodytext">The data, which was worse than market expectations for zero growth, sent the pound sliding against the euro and dollar.</p>.<p class="bodytext">The latest reading contrasted with 0.5-percent expansion in the first quarter when activity was boosted by companies stockpiling ahead of Brexit.</p>.<p class="bodytext">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.</p>.<p class="bodytext">"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.</p>.<p class="bodytext">"Manufacturing output fell back after a strong start to the year, with production brought forward ahead of the UK's original departure date from the EU.</p>.<p class="bodytext">"The construction sector also weakened after a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth at all," he added.</p>.<p class="bodytext">Another contraction in the current third quarter would put Britain in an official recession, ahead of the nation's expected EU withdrawal at the end of October.</p>.<p class="bodytext">British Prime Minister Boris Johnson replaced Theresa May in July after winning the governing Conservatives' leadership contest on a pledge to take Britain out of the bloc with or without a divorce deal on October 31.</p>.<p class="bodytext">"The latest look at the UK economy makes for pretty grim viewing," said XTB analyst David Cheetham.</p>.<p class="bodytext">"Given the growing threat of a no-deal Brexit that looms menacingly overhead, it would not be at all surprising if the current quarter also shows a contraction -- therefore meeting the standard definition of a recession."</p>.<p class="bodytext">The government's official forecaster last month warned that Britain would slide into a year-long recession should it leave the EU without a deal.</p>