Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK Q2 GDP offers no surprises even as business investment stagnates

Published 24/08/2017, 09:32
Updated 24/08/2017, 09:42
© Reuters.  UK GDP rises 0.3% in second quarter; in line with forecasts

© Reuters. UK GDP rises 0.3% in second quarter; in line with forecasts

Investing.com – Growth in the UK economy in the second quarter went unrevised, but business investment stagnated in the three month period, causing worry over the British economy as Britain continues exit negotiations with the European Union, according to the data released on Thursday.

In a report, the Office for National Statistics said gross domestic product (GDP) expanded by a seasonally adjusted 0.3% in the second quarter. That was no surprise to economists who had expected it to be unrevised at 0.3%. The UK’s economy grew by 0.2% in the preceding quarter.

Year-over-year, UK economic growth grew 1.7% in the April to June period, also in line with forecasts for the reading to go unrevised.

Meanwhile, business investment registered no change from the prior quarter, missing forecasts for growth of 0.4% and compared to the 0.6% seen in the first quarter.

Year-on-year, business investment was also flat in the April to June period, compared to expectations of a 0.5% increase and the 0.7% gain registered in the first quarter of the year.

Additionally, the index of services in the U.K. rose 0.5%, in line with expectations and compared to a prior gain of 0.4%.

Exports increased 0.7%, compared to expectations for a 1.0% rise, while imports advanced 0.7%, compared to forecasts for a 0.5% gain.

The 0.1% advance in private consumption missed forecasts for a 0.3% gain.

Following the report, GBP/USD was trading at 1.2787 from around 1.2805 ahead of the release of the data, EUR/GBP was at 0.9218 from 0.9210 earlier and GBP/JPY changed hands at 139.84 compared to the prior 140.02.

Furthermore, European stock markets traded higher. London’s FTSE 100 rose 0.42%, the benchmark Euro Stoxx 50 advanced 0.46%, France's CAC 40 gained 0.37%, while Germany's DAX traded up 0.35%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.