Breaking: UK Preliminary GDP expands 0.8% QoQ in Q1 vs. 1.0% expected
- Quarterly GDP for the UK expanded by 0.8% in Q1 vs. 1.0% expected.
- UK GDP arrived at -0.1% MoM in March vs. 0.1% expected.
- GBP/USD hits fresh two-year lows below 1.2200 on poor UK GDP.
In three months to March, the British economy expanded 0.8% QoQ as against a 1.3% growth booked in Q4 and 1.0% expectations.
On an annualized basis, the Kingdom’s GDP arrived at 8.7% in Q1 vs. 9.0% expected and 6.6% prior.
The UK GDP monthly release showed that the economy contracted in March, coming in at -0.1% vs. 0.1% expected and 0% previous.
Meanwhile, the Index of services (March) arrived at 0.4% 3M/3M and 0.6% prior and 2.0% anticipated.
Market reaction
The cable remains pressured below 1.2200 on the downbeat UK growth numbers. The spot is down 0.48% on the day, at fresh two-year lows.
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).
Author
FXStreet Team
FXStreet
