UK Economy Flatlining, the GBP Will Feel it Afterwards - Forex News by FX Leaders
The GBP is still climbing, but the economy is diving

UK Economy Flatlining, the GBP Will Feel it Afterwards

Posted Tuesday, December 10, 2019 by
Skerdian Meta • 1 min read

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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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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