020 7898 0500UK GDP figures for August and the three months up to August were released yesterday and showed mixed results. In August, the UK economy failed to grow and came in below the 0.1% economists had been expecting. The three-month average reading showed growth of 0.7%, which was the same as an upwardly revised 0.7% growth in the May to July period and higher than market expectations of 0.6%.
Construction output in August grew by 0.3% following a downwardly revised 2.8% rise the previous month. The reading was well below market expectations of a 1.4% gain. Manufacturing production fell by 0.2% which was also below expectations of 0.1% growth, while year-on-year industrial production figures beat expectations of 1% growth by posting 1.3%. It is testament to the importance of the Brexit outcome to the markets that the pound still managed to make some healthy gains against the dollar despite the raft of disappointing economic data. We can expect some significant rallying if the Brexit rumours turn into actual detail.
It has been a relatively quiet week for UK economic data, although Brexit-related news is all that is required to move the pound one way or another at the moment. Today is no different and neither is tomorrow – there is nothing on the schedule, but further speculation on a Brexit deal could steal the headlines anyway.
