Breaking: UK Preliminary GDP shrinks 0.1% QoQ in Q2 vs. -0.2% expected
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- Quarterly GDP for the UK contracted by 0.1% in Q2 vs. -0.2% expected.
- UK GDP arrived at -0.6% MoM in June vs. -1.3% expected.
- GBP/USD recaptures 1.2200 on upbeat UK GDP.
The British economy contracted 0.1% QoQ in the three months to June when compared with a 0.8% growth booked in Q1 and -0.2% expectations.
On an annualized basis, the UK GDP grew 2.9% in Q2 vs. 2.8% expected and an 8.7% expansion seen in the previous quarter.
The UK GDP monthly release showed that the economy shrank in June, coming in at -0.6% vs. -1.3% expected and 0.5% previous.
Meanwhile, the Index of services (June) arrived at -0.4% 3M/3M and 0% prior and 0.9% anticipated.
Citing ONS, MNI reported that “there were positive contributions from consumer-facing services, including accommodation and food service activities, and arts, entertainment and recreation activities. There was a 0.2% decrease in real household consumption.”
Market reaction
The cable picked up fresh bids and briefly recaptured 1.2200 on the upbeat UK growth numbers. The spot is down 0.19% on the day, currently trading at 1.2191.
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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