UK Preliminary GDP beats estimates with -1.5% QoQ in Q1, GBP/USD unimpressed
|- Quarterly GDP for the UK shrank 1.5% in Q1 vs. -1.6% expected.
- UK GDP arrived at 2.1% MoM in March vs. 1.4% expected.
- GBP/USD is little changed on the upbeat UK GDP while above 1.4100.
The British economy contracted 1.5% QoQ in the first quarter of 2021 when compared to a 1.3% growth seen in Q4 and -1.6% expectations. On an annualized basis, the Kingdom’s GDP arrived at -6.1% in Q1 vs. -6.1% expected and -7.3% last.
The UK GDP monthly release showed that the economy expanded more than expected in March, arriving at 2.1% vs. 1.4% expectations and 0.4% previous.
Meanwhile, the Index of services (March) arrived at -2% 3M/3M vs. -2.1% prior.
The Cable sustains the bounce from daily lows while keeping its range below 1.4150 after the upbeat UK growth numbers. The spot is still down 0.13% on the day.
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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