UK GDP arrived at 0.2% MoM in July vs. 0.5% expected.
GBP/USD stays unfazed above 1.1600 on UK GDP miss.
The UK GDP month-to-month launch confirmed that the economic system rebounded in July, growing at 0.2% vs. 0.5% expectations and -0.6% previous.
A Reuters ballot of economists had pointed to month-on-month boom of 0.4% in July.
Meanwhile, the Index of offerings (July) got here in at -0.2% 3M/3M vs. -0.8% estimate and -0.4% prior.
Key takeaways through ONS
“Services grew by way of 0.4% in July 2022, after a fall of 0.5% in June 2022, and was once the major driver to the upward push in GDP; records and conversation grew through 1.5% and used to be the greatest contributor to the offerings increase in July.”
“Production fell by using 0.3% after a fall of 0.9% in June 2022; this used to be on the whole due to the fact of a fall of 3.4% in electricity, gas, steam, and air conditioning supply.”
“Construction additionally fell in July 2022 via 0.8%, after a fall of 1.4% in June 2022; the reduce in month-to-month building output in July 2022 got here fully from restore and maintenance, which fell 2.6%.”
Market reaction
The Cable stays little modified on the below-forecast UK increase numbers. The spot is including 0.22% on the day.
About UK GDP
The Gross Domestic Product launched by using the National Statistics is a measure of the whole cost of all items and offerings produced through the UK. The GDP is regarded as a vast measure of the UK financial activity. Generally speaking, a rising vogue has a high-quality impact on the GBP, whilst a falling style is considered as terrible (or bearish).
