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THE UK ECONOMY SHRANK 0.2% QUARTER ON QUARTER IN THE SECOND QUARTER, MARKING THE FIRST TIME SINCE 2012

LONDON, AUGUST 9TH (XINHUA) -- DATA RELEASED BY THE UK OFFICE FOR NATIONAL STATISTICS ON AUGUST 9TH SHOWED THAT THE COUNTRY'S GROSS DOMESTIC PRODUCT (GDP) SHRANK BY 0.2% MONTH ON MONTH IN THE SECOND QUARTER OF THIS YEAR. THIS IS THE FIRST TIME SINCE 2012 THAT THE UK ECONOMY HAS EXPERIENCED A CONTRACTION.DATA SHOWS THAT THE THREE MAJOR ECONOMIC SECTORS IN THE UK, NAMELY SERVICES, MANUFACTURING, AND CONSTRUCTION, HAVE ALL PERFORMED POORLY. THE UK OFFICE FOR NATIONAL STATISTICS BELIEVES THAT THE FLUCTUATIONS IN ECONOMIC DATA THIS YEAR REFLECT A SIGNIFICANT IMPACT ON THE UK ECONOMY DUE TO THE PROGRESS OF BREXIT.IN THE FIRST QUARTER OF THIS YEAR, THE UK ECONOMY PERFORMED BETTER THAN MARKET EXPECTATIONS, WITH A MONTH ON MONTH GROWTH OF 0.5%. ANALYSTS SUGGEST THAT THIS IS MAINLY DUE TO MANUFACTURING COMPANIES HOARDING A LARGE AMOUNT OF GOODS NEAR THE PREVIOUSLY SET BREXIT DEADLINE OF MARCH 29TH.HOWEVER, IN ORDER TO AVOID A POSSIBLE "NO DEAL BREXIT" AT THE END OF MARCH AND ITS IMPACT ON THE INDUSTRY, SEVERAL UK CAR MANUFACTURERS HAVE ADVANCED THE ANNUAL FACTORY MAINTENANCE SHUTDOWN TIME TO APRIL. THIS LED TO A HALVING OF UK CAR OUTPUT IN THE SECOND QUARTER OF THIS YEAR, AFFECTING THE PERFORMANCE OF THE UK ECONOMY FOR THAT QUARTER.AT PRESENT, THE NEW DEADLINE FOR BREXIT IN THE UK HAS BEEN POSTPONED TO OCTOBER 31ST. BRITISH PRIME MINISTER BORIS JOHNSON HAS REPEATEDLY STATED THAT THE UK WILL STRIVE TO REACH A NEW "BREXIT" AGREEMENT WITH THE EU, WHILE ALSO EMPHASIZING THAT THE UK MUST COMPLETE THE "BREXIT" BEFORE THE NEW DEADLINE, EVEN IF THE COST OF DOING SO IS A "NO DEAL BREXIT". ANALYSTS BELIEVE THAT THIS STANCE HAS LEFT THE UK ECONOMIC OUTLOOK FULL OF UNCERTAINTY IN THE SECOND HALF OF THIS YEAR.