UK economy shrinks for the first time since 2021
The unwinding of stockpiling within the first quarter contributed to the drop.
Gross Domestic Product (GDP) decreased by 0.2% between April and June, according to the Office for National Statistics (ONS).
The economy was weaker than both market expectations and also the Bank of England's latest forecasts, which had pointed to flat development in the quarter.
Rob Kent Smith, head of GDP at the ONS, said: “GDP contracted within the second quarter the very first time since 2012 after robust development in the very first quarter.
“Manufacturing output fell back after a strong begin to the year, with production brought forward in front of the UK's original departure date in the EU.
“The construction sector also weakened following a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth whatsoever.”
The contraction compares to 0.5% development in the previous quarter, when the highest quarterly pickup in manufacturing because the 1980s was recorded.
The ONS said companies had been accumulating additional goods in the first quarter awaiting a March Brexit.
But using the original deadline later called off in favour of an October exit, firms which spent the very first 3 months of the year stockpiling look to have used up their stores before building up new reserves.
Production output fell by 1.4%, with manufacturing showing a 2.3% decline.
The sector was also overwhelmed by a stop by transport equipment, which was 5.2% lower because of annual car factory closures being brought forward from summer to April, as companies planned for possible Brexit disruption.
Construction output was also weaker, falling by 1.3%.
This compared with a 1.4% increase in the first quarter, using the quarterly decline largely reflecting a 6% stop by repair and maintenance work.
The services sector, that is normally the main driver of Britain's economic growth, had its weakest quarter for 3 years, climbing 0.1%.
In comparison with the same quarter a year ago, GDP was up 1.2%.
The ONS data dump also showed that the UK's trade deficit narrowed by lb16 billion to lb4.3 billion within the quarter, because the level of imported goods declined following sharp rises in the first three months of the year.
