UK economy grows by 0.5%

Share On Facebook
share on Linkedin

The Office for National Statistics stated that the UK grew by a healthy 0.5%, defying all Brexit fears. Despite the positive data, investors are not convinced it tells the whole story, as it only showed the initial impact of Brexit, and the majority of investors seem to think the UK will struggle to avoid a downturn when Article 50 is invoked in the first quarter of 2017.


UK GDP printed at 0.5%, versus an expected 0.3%. While the important service sector increased by 0.8%, output decreased in the main industrial groups, with construction decreasing by 1.4%, agriculture by 0.7% and production by 0.4%. In light of the positive reading, the Bank of England might put on hold further emergency stimulus as the better than expected growth figure means a reduced probability the MPC will vote to slash interest rates this year.

Data recap

To wrap up yesterday’s data, headline US durable goods orders declined slightly in September by 0.1%, initial jobless claims declined 3k last week to 258k, and pending home sales increased +1.5% against an expected +1.0. Meanwhile, there was no change in the Kansas City Fed’s manufacturing survey index, at +6.

Today looks set to be another big day for data, with the main focus on Q3 GDP released in the US this afternoon at 1.30pm. The consensus is currently 2.5%. The expectation for this data is huge, as this has come ahead of the last FED meeting for this year. A stronger GDP figure has the chance to convince the FED to hike interest rates before Christmas.

This morning French GDP numbers showed that France returned to growth, although at a slow pace. French GDP expanded by 0.2% in the third quarter of this year and Spanish GDP figures are also out, showing Spain growing at 0.7%, despite political deadlock. Later this morning we will also receive inflation figures in Europe, where the numbers for France, Spain and Germany are scheduled later this morning.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This market update was provided by Currencies Direct, the overseas money transfer specialists. They could save you thousands with their bank-beating exchange rates, fee-free transfers and removal of all hidden charges. To view their range of services and to request a quote, click here.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220702 18:30:15