Investing.com - The U.K. economy grew more than expected in the second quarter, preliminary official data showed on Wednesday.
In a report, the Office for National Statistics said gross domestic product expanded by a seasonally adjusted 0.6% in the three months ended June 30, above forecasts for growth of 0.4%. The U.K.’s economy grew by 0.4% in the preceding quarter.
Year-over-year, U.K. economic growth expanded 2.2% in the second quarter, also above the forecast for an expansion of 2.0%. The U.K. economy grew at an annualized rate of 2.0% in the first quarter.
The second quarter data is the final measure of growth in the run-up to the U.K.’s June 23 referendum that resulted in Britain’s decision to leave the European Union (EU), known as a Brexit.
Though many economists pointed to signs of uncertainty impacting the British economy as the vote neared, experts warned that third quarter numbers could be damaged further.
According to a Bloomberg survey released on Wednesday, consensus expects the U.K. to contract by 0.1% in the third quarter.
Immediately after the report, GBP/USD was trading at 1.3124 from around 1.3136 ahead of the release of the data, while EUR/GBP was at 0.8380 from 0.8372 earlier.
Meanwhile, European stock markets were mostly higher. London’s FTSE 100 gained 0.25%, the Euro Stoxx 50 rose 0.94%, France's CAC 40 jumped 1.51%, while Germany's DAX traded up 0.88%.