Breaking: UK Preliminary GDP stagnates in Q4 2022, as expected

• Quarterly GDP for the UK came in at 0% in Q4 vs. 0% expected.
• UK GDP arrived at -0.5% MoM in Dec vs. -0.3% expected.
• GBP/USD whipsaws around 1.2100 on mixed UK GDP.

The UK economy stagnated at 0% QoQ in the three months to December when compared with a 0.3% decline booked in Q3 and 0% expectations.

On an annualized basis, the UK GDP expanded 0.4% in Q4 vs. 0.4% expected and a 1.9% growth seen in the previous quarter.

The UK GDP monthly release showed that the economy contracted by 0.5% in December, coming in at -% vs. -0.3% expected and 0.1% previous.

Meanwhile, the Index of services (September) arrived at 0% 3M/3M and 0% prior and 0.3% anticipated.

Market reaction

GBPUSD dropped and popped in an immediate reaction to the mixed UK growth numbers before regaining the 1.2100 area, where it now wavers. The spot is down 0.14% on the day, as of writing.

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).