- UK GDP arrived at 0.4% MoM in Aug vs. 0.5% expected.
- GBP/USD remains little changed on the downbeat UK GDP.
The UK GDP monthly release showed that the economy expanded less-than-expected in August, arriving at 0.4% vs. 0.5% expectations and 0.1% previous.
Meanwhile, the Index of Services (August) came in at 3.7% 3M/3M vs. 1.2% expected and 5.2% prior.
Key highlights (via ONS)
Accommodation and food service activities, and arts, entertainment and recreation contributed most positively to services growth in August 2021.Medium (h2)
There were falls in health output and retail trade.
Production output increased by 0.8% in August 2021, mainly because of the continued increase in the extraction of crude petroleum and natural gas following the recent temporary closure of oil field production sites.
Construction contracted, with output down by 0.2% in August 2021; the sector is now 1.5% below its pre-pandemic level.
GDP growth for July 2021 has been revised from 0.1% growth to a 0.1% fall; mainly because of downwardly revised data for the manufacture of motor vehicles, oil and gas, and changes to how health output is measured.
The cable keeps its range around 1.3610 on the UK growth numbers. The spot trades 0.18% higher 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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.