Sterling trades mildly lower after UK GDP miss. UK GDP was flat in August, grew 0.0% mom, below expectation of 0.1% mom. Though July’s figure was revised up from 0.3% mom to 0.4% mom. For the three months from June to August, GDP grew 0.7% from the March to May quarter.
Commenting on today’s GDP figures, Head of GDP Rob Kent-Smith said: “The economy continued to rebound strongly after a weak spring, with retail, food and drink production and housebuilding all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend.”
All three main sectors contributed to GDP growth in the three months to August. Services grew 0.42%, production grew 0.10%, construction grew 0.17%.
Also from UK, industrial production rose 0.2% mom, 1.3% in August, above expectation of 0.1% mom, 1.1% yoy. Manufacturing production dropped -0.2% mom, rose 1.3% yoy, below expectation of 0.2% mom, 1.5% yoy.
Visible trade deficit widened to GBP -11.2B in August, above expectation of GBP -10.9B.
