UK GDP grows 0.3% MoM in January vs. 0.1% expected
- UK GDP arrived at 0.3% MoM in January vs. 0.1% expected.
- GBP/USD extends gains to near 1.1950 on upbeat UK GDP.
The UK Gross Domestic Product (GDP) monthly release showed on Friday that the economy expanded in January, arriving at 0.3 % vs. 0.1% expectations and -0.5% previous.
Meanwhile, the Index of services (January) came in at 0% 3M/3M vs. 0.1% estimate and 0% prior.
Commenting on the GDP data, UK Finance Minister Jeremy Hunt said, “the UK economy has proved more resilient than many expected, but there is a long way to go.”
Market reaction
The Cable picked up fresh bids on the upbeat UK growth numbers. At the press time, the spot is trading 0.17% higher on the day at 1.1944, having briefly recaptured 1.1950 on the data release.
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 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
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
