UK Economy Flatlining, the GBP Will Feel it Afterwards
The UK GDP report showed increased weakness in the UK economy, which will catch up with the GBP once elections are over
Today the UK GDP report was released and it included manufacturing, industrial production, construction output, etc. So, it was an important round of data coming out of the UK. The British economy has weakened considerably, having fallen in contraction in Q2 and also contracting in the last two months. Below are the economic numbers:
UK GDP Report
- Monthly GDP 0.0% vs +0.1% MoM expected
- Prior -0.1%
- 3Mo3M GDP 0.0% vs 0.0% expected
- Prior +0.3%
UK Manufacturing, Industrial Production and Construction
- Manufacturing production +0.2% vs 0.0% m/m expected
- Prior -0.4%
- Manufacturing production -1.2% vs -1.4% y/y expected
- Prior -1.8%
- Industrial production +0.1% vs -0.3% m/m expected
- Prior -0.3%
- Industrial production -1.3% vs -1.2% y/y expected
- Prior -1.4%
- Construction output -2.3% vs -0.2% m/m expected
- Prior -0.2%
- Construction output -2.1% vs -0.1% y/y expected
- Prior +0.5%
So, another very weak round of data. Economic growth stagnated in October after declining in the previous two months and 3Mo3M it fell flat too. Manufacturing and industrial production are a bit better than in September, but only slightly and YoY production is really negative.
Construction output came in much worse, so things look pretty bleak. The GBP is not minding much, but once the elections are over, GBP traders will shift their attention to the economic data, so dire times are expected for the GBP ahead.
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