UK GDP eases to 0.1% in July versus 0.6% expected, GBP/USD steps back to 1.3845
- UK GDP eased to 0.1% versus 0.6% expected and 1.0% prior for July.
- Manufacturing Production eased, Industrial Production improved.
UK data-dump for July, released early Friday, coveys that the monthly GDP figure weakened to 0.1% MoM versus 0.6% forecast and 1.0% prior relaese in July. The 3M/3M figures for the growth remains unchanged around 3.6%.
Further details suggest that the Manufacturing Production eased to 0.0% MoM from 0.1% expected and 0.2% prior but matched market consensus of 6.0% on YoY, versus 13.6% previous readouts.
On the contrary, the Industrial Production details were upbeat with monthly prints rising past 0.4% expected and -0.7% prior to 1.2% whereas the yearly details grew beyond 3.0% forecast to 3.8% but stayed below 8.3% prior.
Additionally, the trade deficit also widened wheras th Index of Services 3M/3M for July eased to 4.5% from 5.3% forecast. Read figures here.
GBP/USD drops after the mixed data
In a reaction to the key UK data, the GBP/USD prices drop to 1.3845 but stays positive for the day, up 0.06% intraday by the press time.
Read: GBP/USD pushes near 1.3850 amid USD retreat, UK data eyed
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
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
