UK GDP grew 0.3% mom in July, well above expectation of 0.1% mom. However, for the three months to July, GDP was flat, following -0.2% from April to June. Looking at the details for the three months to July, Index of services rose 0.13%. Index of production dropped -0.07%. Index of construction dropped -0.05%.
Head of GDP Rob Kent-Smith said: “GDP growth was flat in the latest three months, with falls in construction and manufacturing. While the largest part of the economy, services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019. The trade deficit narrowed due to falling imports, particularly unspecified goods (including non-monetary gold), chemicals and road vehicles in the three months to July.”
Also from UK, industrial production came in at 0.1% mom, -0.9% yoy in July versus expectation f0.0% mom, -1.0% yoy. Manufacturing production was at 0.3% mom, -0.6% yoy versus expectation of 0.0% mom, -1.0% yoy. Visible trade deficit widened slightly to GBP-9.1B, smaller than expectation of -9.6B.
UK Johnson pledges no further Brexit delay after another Commons defeat
UK Prime Minister Boris Johnson suffered his sixth consecutive defeat at the Commons yesterday. His second call for snap election was also rejected as widely expected. The Commons is now suspended for five weeks.
At the same time, Johnson pledged after the vote that “this government will press on with negotiating a deal, while preparing to leave without one,” referring to Brexit. And, “I will go to that crucial summit in Brussels on Oct. 17, and no matter how many devices this Parliament invents to tie my hands, I will strive to get an agreement in the national interest.”
Johnson also insisted “this government will not delay Brexit any further.” That even the Parliament has passed a law that requires Johnson to seek Brexit delay from October 31 if he couldn’t get a deal.