Breaking: UK Preliminary GDP contracts 0.2% QoQ in Q3 vs. -0.5% expected
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- Quarterly GDP for the UK contracted 0.2% in Q3 vs. -0.5% expected.
- UK GDP arrived at -0.6% MoM in June vs. -0.4% expected.
- GBP/USD catches a fresh bid above 1.1700 on upbeat UK GDP.
The UK economy contracted 0.2% QoQ in the three months to September when compared with a 0.2% growth booked in Q2 and -0.5% expectations.
On an annualized basis, the UK GDP expanded 2.4% in Q3 vs. 2.1% expected and a 4.4% increase seen in the previous quarter.
The UK GDP monthly release showed that the economy contracted in September, coming in at -0.6% vs. -0.4% expected and -0.3% previous.
Meanwhile, the Index of services (September) arrived at 0% 3M/3M and 0.5% prior and 0.1% anticipated.
Market reaction
GBPUSD jumped briefly to near 1.1720 on the upbeat UK growth numbers before reverting to the 1.1700 area, where is now wavers. The spot is down 0.06% on the day, as of writing.
About UK GDP
The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).
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