Breaking: UK Preliminary GDP shrinks 0.1% QoQ in Q2 vs. -0.2% expected

• Quarterly GDP for the UK contracted by 0.1% in Q2 vs. -0.2% expected.
• UK GDP arrived at -0.6% MoM in June vs. -1.3% expected.
• GBP/USD recaptures 1.2200 on upbeat UK GDP.

The British economy contracted 0.1% QoQ in the three months to June when compared with a 0.8% growth booked in Q1 and -0.2% expectations.

On an annualized basis, the UK GDP grew 2.9% in Q2 vs. 2.8% expected and an 8.7% expansion seen in the previous quarter.

The UK GDP monthly release showed that the economy shrank in June, coming in at -0.6% vs. -1.3% expected and 0.5% previous.

Meanwhile, the Index of services (June) arrived at -0.4% 3M/3M and 0% prior and 0.9% anticipated.

Citing ONS, MNI reported that “there were positive contributions from consumer-facing services, including accommodation and food service activities, and arts, entertainment and recreation activities. There was a 0.2% decrease in real household consumption.”

Market reaction

The cable picked up fresh bids and briefly recaptured 1.2200 on the upbeat UK growth numbers. The spot is down 0.19% on the day, currently trading at 1.2191.

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).