This archive report was first published on 9 August 2019.
August 9, 2019 - The British economy has entered a period of economic uncertainty, with a 0.2% contraction in the second quarter, its first decline in over six years.
The Office of National Statistics reported the decline, which disappointed many analysts who had predicted growth to be unchanged compared to the first quarter.
Some slowing of growth had been expected, as businesses built up inventories in the first quarter, anticipating a March Brexit. However, in the second quarter, businesses made fewer purchases as those inventories were slowly used up.
Industrial leaders have warned of widespread economic disruption if Britain leaves the European Union without a plan, a no-deal Brexit, which has become a growing concern as the new Brexit deadline of October 31 approaches.
The Bank of England has also expressed concerns, stating that the chance of a no-deal Brexit is hampering its ability to forecast the British economy's future.
The British pound has been sliding in value versus the American dollar for several months, falling to around $1.21, a low last seen in early 2017.
