UK Preliminary GDP beats estimates with -1.5% QoQ in Q1, GBP/USD unimpressed
- Quarterly GDP for the UK shrank 1.5% in Q1 vs. -1.6% expected.
- UK GDP arrived at 2.1% MoM in March vs. 1.4% expected.
- GBP/USD is little changed on the upbeat UK GDP while above 1.4100.
The British economy contracted 1.5% QoQ in the first quarter of 2021 when compared to a 1.3% growth seen in Q4 and -1.6% expectations. On an annualized basis, the Kingdom’s GDP arrived at -6.1% in Q1 vs. -6.1% expected and -7.3% last.
The UK GDP monthly release showed that the economy expanded more than expected in March, arriving at 2.1% vs. 1.4% expectations and 0.4% previous.
Meanwhile, the Index of services (March) arrived at -2% 3M/3M vs. -2.1% prior.
The Cable sustains the bounce from daily lows while keeping its range below 1.4150 after the upbeat UK growth numbers. The spot is still down 0.13% 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).
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.
