- UK Final Q1 GDP misses expectations across the time horizon.
- GBP/USD challenges lows below 1.2300 on downbeat data.
The UK GDP second estimate revealed that the economy showed a bigger-than-expected contraction, arriving at -2.2% QoQ in the first quarter of 2020 vs. -2.0% seen in the first readout, and below the consensus forecasts of -2.0%.
On an annualized basis, the UK economy’s growth rate arrived at -1.7% in Q1, slightly worse than expectations of -1.6% and down from -1.6% previous reading.
Separately, the UK Total Business Investment data arrived at -0.3% QoQ in Q1 while at +0.8% YoY for the same period. The annualized figure surprised markets to the upside.
Meanwhile, the UK Q1 Current Account deficit expanded to GBP -21.10 billion vs. GBP-15.00 billion expected and GBP-5.6 billion last.
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