A batch of economic releases have painted a slightly better than expected picture of the UK economy with growth and production measures both topping estimates. However, the gains seen in the pound have been relatively small and measured in response, with currency traders remaining far more interested in the latest developments on the Brexit front.
UK stocks overall are little changed with the FTSE looking to regain its poise above the 7400 mark after Tuesday’s losses.
Growth figures extend recent recovery
In what is the tenth release of month-on-month GDP figures from the ONS, there’s been a some good news for the UK economy with an increase of 0.2% for February - above the 0.0% expected. This follows on from a 0.5% rise in January and an upwards revision to December’s decline and while the nature of this data means that it is inherently volatile, the overall trend has no doubt improved.
Having said that, the pace of growth is still sluggish at best when viewed at a rate of 0.3% for the past 3 months and this is also artificially inflated by Brexit stockpiling so the true figure is likely lower.